Arbeitspapier
Private provision of a complementary public good
For several years, an increasing number of firms have been 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 affect 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
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 1756
- Classification
-
Wirtschaft
Noncooperative Games
Oligopoly and Other Imperfect Markets
Information and Internet Services; Computer Software
- Event
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Geistige Schöpfung
- (who)
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Schmidtke, Richard
- Event
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Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
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Munich
- (when)
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2006
- Handle
- Last update
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10.03.2025, 11:41 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Schmidtke, Richard
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2006
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