EconPapers    
Economics at your fingertips  
 

Open Source Development in a Differentiated Duopoly

Stephane Verani ()
Additional contact information
Stephane Verani: Department of Economics, The University of Western Australia

No 06-05, Economics Discussion / Working Papers from The University of Western Australia, Department of Economics

Abstract: Open source software is released under an open source license giving individuals the right to use, modify, and redistribute freely the programs. This paper proposes a model of differentiated duopoly in which firms invest in the development of proprietary or open source software. The main findings are: (i) firms invest more when the products are substitutes; (ii) for substitute products, firms’ investment in software development is greatest when the software is open source; (iii) for close to perfect complements, firms’ investment in software development is greatest when the software is proprietary; and (iv) for substitute products, investment in open source software yields higher profits than investment in proprietary software.

Pages: 28 pages
Date: 2006
New Economics Papers: this item is included in nep-com, nep-ict, nep-ind and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ecompapers.biz.uwa.edu.au/paper/PDF%20of%2 ... 006/06_05_Verani.pdf First version, 2006 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uwa:wpaper:06-05

Access Statistics for this paper

More papers in Economics Discussion / Working Papers from The University of Western Australia, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sam Tang ().

 
Page updated 2024-04-10
Handle: RePEc:uwa:wpaper:06-05