Arbeitspapier

Private Provision of a Complementary Public Good

For several years, an increasing number of firms are investing in Open Source Software (OSS). While improvements in such a non-excludable public good cannot be appropriated, companies can benefit indirectly in a complementary proprietary segment. We study this incentive for investment in OSS. In particular we ask how (1) market entry and (2) public investments in the public good affects the firms' production and profits. Surprisingly, we find that there exist cases where incumbents benefit from market entry. Moreover, we show the counter-intuitive result that public spending does not necessarily lead to a decreasing voluntary private contribution.

Language
Englisch

Bibliographic citation
Series: SFB/TR 15 Discussion Paper ; No. 134

Classification
Wirtschaft
Noncooperative Games
Oligopoly and Other Imperfect Markets
Information and Internet Services; Computer Software
Subject
Open Source Software
Private Provision of Public Goods
Cournot-Nash Equilibrium
Complements
Market Entry

Event
Geistige Schöpfung
(who)
Schmidtke, Richard
Event
Veröffentlichung
(who)
Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
(where)
München
(when)
2006

DOI
doi:10.5282/ubm/epub.13417
Handle
URN
urn:nbn:de:bvb:19-epub-13417-5
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Schmidtke, Richard
  • Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)

Time of origin

  • 2006

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