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Why open source software can succeed

Author

Listed:
  • Andrea Bonaccorsi
  • Cristina Rossi

Abstract

The paper discusses three key economic problems raised by the emergence and diffusion of Open source software: motivation, coordination, and diffusion under a dominant standard. First, the movement took off through the activity of a software development community that deliberately did not follow profit motivations. Second, a hierarchical coordination emerged without the support of an organization with proprietary rights. Third, Linux and other open source systems diffused in an environment dominated by established proprietary standards, which benefited from significant increasing returns. The paper shows that recent developments in the theory of critical mass in the diffusion of technologies with network externality may help to explain these phenomena.

Suggested Citation

  • Andrea Bonaccorsi & Cristina Rossi, 2002. "Why open source software can succeed," LEM Papers Series 2002/15, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    • Handle: RePEc:ssa:lemwps:2002/15
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    File URL: http://www.lem.sssup.it/WPLem/files/2002-15.pdf
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    References listed on IDEAS

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    1. Lerner, Josh & Tirole, Jean, 2001. "The open source movement: Key research questions," European Economic Review, Elsevier, vol. 45(4-6), pages 819-826, May.
    2. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-337, May.
    3. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    4. Liebowitz, S J & Margolis, Stephen E, 1990. "The Fable of the Keys," Journal of Law and Economics, University of Chicago Press, vol. 33(1), pages 1-25, April.
    5. Bass, Frank M, 1980. "The Relationship between Diffusion Rates, Experience Curves, and Demand Elasticities for Consumer Durable Technological Innovations," The Journal of Business, University of Chicago Press, vol. 53(3), pages 51-67, July.
    6. Witt, Ulrich, 1997. ""Lock-in" vs. "critical masses" -- Industrial change under network externalities," International Journal of Industrial Organization, Elsevier, vol. 15(6), pages 753-773, October.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Nicolas Jullien & Karine Roudaut, 2012. "Can Open Source projects succeed when the producers are not the users ? Lessons from the data processing field," Post-Print hal-01682500, HAL.
    2. Alper Duman, 2009. "Comparative Analysis of Organizational Forms in the Software Industry and Legal Services," Working Papers 0903, Izmir University of Economics.
    3. Pénin, Julien & Wack, Jean-Pierre, 2008. "Research tool patents and free-libre biotechnology: A suggested unified framework," Research Policy, Elsevier, vol. 37(10), pages 1909-1921, December.
    4. Deng, Feng, 2008. "What Is “Open”? An Economic Analysis of Open Institutions," MPRA Paper 8888, University Library of Munich, Germany.
    5. Julien Pénin, 2007. "Open Knowledge Disclosure: An Overview Of The Evidence And Economic Motivations," Journal of Economic Surveys, Wiley Blackwell, vol. 21(2), pages 326-347, April.

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    More about this item

    Keywords

    Open Source; Diffusion; Network Externality.;
    All these keywords.

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