Artikel

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

Purpose: A growing number of commercial open source software, based on free open source software, appears in many segments of software market. The purpose of this study is to investigate how commercial open source software affects proprietary software producer's pricing (market share or profit), 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 free open source software, and its extended one considers proprietary software competing with both free and commercial open source software. Findings: This study mainly finds that the presence of commercial open source software leads to the software price and profit for proprietary software producer decrease and the consumer surplus and social welfare increase. 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 proprietary software producer's competitive strategy, consumer surplus and social welfare.

Language
Englisch

Bibliographic citation
Journal: Journal of Industrial Engineering and Management (JIEM) ; ISSN: 2013-0953 ; Volume: 7 ; Year: 2014 ; Issue: 5 ; Pages: 1183-1196 ; Barcelona: OmniaScience

Classification
Management
Subject
competition
open source software
commercial open source software
community open source software
proprietary software
software usability

Event
Geistige Schöpfung
(who)
Xing, Mingqing
Event
Veröffentlichung
(who)
OmniaScience
(where)
Barcelona
(when)
2014

DOI
doi:10.3926/jiem.1260
Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Artikel

Associated

  • Xing, Mingqing
  • OmniaScience

Time of origin

  • 2014

Other Objects (12)