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Some Simple Economics of Open Source

Jean Tirole
University of Toulouse 1 - Industrial Economic Institute (IDEI); University of Toulouse 1 - Groupe de Recherche en Economie Mathématique et Quantitative (GREMAQ); Centre for Economic Policy Research (CEPR)

Josh Lerner
Harvard Business School - Finance Unit; Harvard University - Entrepreneurial Management Unit; National Bureau of Economic Research (NBER)

Journal of Industrial Economics, Vol. 50, No. 2, pp. 197-234, June 2002

Abstract:
There has been a recent surge of interest in open source software development, which involves developers at many different locations and organizations sharing code to develop and refine programs. To an economist, the behavior of individual programmers and commercial companies engaged in open source projects is initially startling. This paper makes a preliminary exploration of the economics of open source software. We highlight the extent to which labor economics, especially the literature on 'career concerns', and industrial organization theory can explain many of these projects' features. We conclude by listing interesting research questions related to open source software.

Accepted Paper Series

Date posted: November 14, 2002 ; Last revised: February 28, 2004

Suggested Citation

Tirole, Jean and Lerner, Josh, Some Simple Economics of Open Source. Journal of Industrial Economics, Vol. 50, No. 2, pp. 197-234, June 2002. Available at SSRN: http://ssrn.com/abstract=313493

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Contact Information

Josh Lerner (Contact Author) Harvard Business School - Finance Unit ( email ) Boston, MA 02163 United States 617-495-6065 (Phone) 617-496-7357 (Fax) HOME PAGE: http://www.people.hbs.edu/jlerner/
Harvard University - Entrepreneurial Management Unit ( email ) Cambridge, MA 02163 United States
National Bureau of Economic Research (NBER) 1050 Massachusetts Avenue Cambridge, MA 02138 United States
Jean Tirole University of Toulouse 1 - Industrial Economic Institute (IDEI) ( email ) Place Anatole France 21 Allees de Brienne F-31042 Toulouse Cedex France +33 5 61 12 8642 (Phone) +33 5 61 12 8637 (Fax)
University of Toulouse 1 - Groupe de Recherche en Economie Mathématique et Quantitative (GREMAQ) ( email ) Manufacture des Tabacs 21 Allees de Brienne 31000 Toulouse France
Centre for Economic Policy Research (CEPR) 90-98 Goswell Road London EC1V 7RR United Kingdom