Open Source Technologies
DOI:
https://doi.org/10.14738/assrj.47.2312Keywords:
JEL Classification System, D23, D45, M15, O31, O34Abstract
Abstract. We focus on a contestable market with network externalities with an incumbent and an entrant. The incumbent, unlikethe entrant, already has an installed base of consumers. We look at decision situations of firms regarding how proprietary they want
to make their technology , either through patent protection or through development in open source systems (OSS). We explicitly
model the direct and indirect effects of network externalities. For example, more software companies are willing to produce
programs for an operating system (OS) if it has a larger consumer base. This increased competition could lead to an improvement
of the quality of the OS. The model predicts that using open source technologies is likely to enhance the rate of R&D , and
consequently the quality of the product.. An incumbent that would choose this strategy is likely to deter entrance of a newcomer
because it can play out its advantage of a larger network.
References
Gottinger, H. W.(2003) Economies of Network Industries, Routledge: London
Gottinger, H.W. (2006) Innovation, Technology and Hypercompetition, Routledge: London
Economic Review. 75 (3), 424-440
Oxford Economic Papers 38, 146-165
, 180-188
Katz, M. and Shapiro, C.(1992) "Product Introduction with Network Externalities". The Journal of
Industrial Economics, 40, 55-83
Management Strategy 12, 25-35
Organization 14, 531-547
Working Paper, Cambridge, Ma.
Lerner,J. and M. Schankerman(2010),The Comingled Code, MIT Press, Cambridge,Ma.
Lerner,J. (2012), The Architecture of Innovation, Harvard Business School Press, Boston
International Journal of Industrial Organization 14, 801-823
Downloads
Published
2017-04-09
How to Cite
Gottinger, H. W. (2017). Open Source Technologies. Advances in Social Sciences Research Journal, 4(7). https://doi.org/10.14738/assrj.47.2312
Issue
Section
Articles
