The impact of commercial open source software on proprietary software producers and social welfare

Visualitza/Obre
Tipus de documentArticle
Data publicació2014-12
EditorOmniaScience
Condicions d'accésAccés obert
Abstract
Purpose: A growing number of commercial open source software, based on community open
source, appears in many segments of the software market. The purpose of this study is to
investigate how commercial open source software affects the pricing (market share or profit) of
proprietary software producer, consumer surplus and social welfare.
Design/methodology: To analyze the impact of commercial open source software on
proprietary software producer, this study constructs two vertical-differentiation models: the
basic model considers proprietary software only competing with community open source
software, and its extended one considers proprietary software competing with both community
and commercial open source software.
Findings: This study mainly finds that the presence of commercial open source software can
lead to the decrease of the software price and profit for proprietary software producer, while
the consumer surplus and social welfare will be increased. However, it does not necessarily
cause the decline in the market share for proprietary software producer.
Originality/value: The main contribution of this study is to examine the effect of commercial
open source software on the competitive strategies of proprietary software producer, consumer
surplus and social welfare
CitacióXing, Mingqing. The impact of commercial open source software on proprietary software producers and social welfare. "Journal of Industrial Engineering and Management", Desembre 2014, vol. 7, núm. 5, p. 1183-1196.
Dipòsit legalB-28744-2008
ISSN2013-0953
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