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On the determinants of the degree of openness of Open Source firms: An entry model

Stefano Colombo (), Luca Grilli () and Cristina Rossi Lamastra
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Cristina Rossi Lamastra: Politecnico di Milano

No ief0088, DISCE - Quaderni dell'Istituto di Economia e Finanza from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE)

Abstract: This paper examines the relationship between the degree of openness that software start-ups choose and some of the main industrial features faced by new entrants. Hypotheses derived from a formal model are tested through the implementation of econometric techniques and information provided by a novel database (ELISS). Theoretical predictions and empirical results indicate that the choice by start-ups of the degree of openness is negatively influenced by the sensitivity of consumers to price and is positively related both to the strength of network externalities their products exhibit and to the competitive advantage of the incumbent.

Keywords: open-source software; network effects; entry (search for similar items in EconPapers)
JEL-codes: L13 L17 L86 (search for similar items in EconPapers)
Pages: nn pages 19
Date: 2009-04
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