Network Economies for Open Source Technologies* (OST)
Journal Title: Advances in Social Sciences Research Journal - Year 2017, Vol 4, Issue 7
Abstract
We focus on a contestable market with network externalities with an incumbent and an entrant. The incumbent, unlike the 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.
Authors and Affiliations
Hans Gottinger
Keywords
Related Articles
- EP ID EP329083
- DOI 10.14738/assrj.47.2312.
- Views 47
- Downloads 0
The Reality of Strategic Human Capital Development in Small and Medium Enterprises.
Human capital is vital for any organization for the attainment of organizational objectives. Developing the human capital thus becomes a critical conduit to the attainment of organizational objective. There has been an i...
Trust-A Catalyst to Knowledge Transfer: Contemporary Studies
This is a literature based paper addressing the contemporary studies on the impacts of trust on knowledge transfer. Knowledge transfer is one of the important elements of knowledge management process. Knowledge transfer...
Impact of Entrepreneurship Education on New Ventures Creation - A Case Study
This study explored the impact of entrepreneurship education on new ventures creations. Entrepreneurship education is viewed as a potent tool for influencing students ‘learning orientation and expression of new ventures...
Oil, Gas Contracts And Islamic Principles
A great amount of the reserves of crude oil and natural gas resources are located within the territories of the countries the majority of the population of which are Muslims. There is a growing concern among the populati...
A DSM Comparative Study of PTSD Incidence in Indonesia
A research project measured PTSD incidence in disaster-prone zones of Indonesia, Java six and Sumatra three years post-disaster. The Downs Posttraumatic Stress Scale, a new instrument with high reliability for children a...