Abstract

http://ssrn.com/abstract=319081
 
 

References (26)



 
 

Citations (19)



 


 



Public Subsidies for Open Source? Some Economic Policy Issues of the Software Market


Klaus M. Schmidt


Ludwig-Maximilians-Universität München - Faculty of Economics; CESifo (Center for Economic Studies and Ifo Institute); Centre for Economic Policy Research (CEPR)

Monika Schnitzer


University of Munich - Department of Economics; Centre for Economic Policy Research (CEPR)

July 12, 2002


Abstract:     
This paper discusses the economic merits of direct or indirect governmental support for open source projects. Software markets differ from standard textbook markets in three important respects that may give rise to market failures: (i) large economies of scale, (ii) crucially important innovations, (iii) significant network effects and switching costs. We analyze the differences between proprietary software and open source software with respect to these market features and ask whether open source as an alternative to proprietary software can mitigate these problems. Then we discuss the implications of various forms of governmental support for open source.

Number of Pages in PDF File: 37

Keywords: Software Market, Open Source, Public Goods, Innovation Incentives, Public Subsidies

JEL Classification: H41, O31, O38

working papers series


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Date posted: August 22, 2002  

Suggested Citation

Schmidt, Klaus M. and Schnitzer, Monika, Public Subsidies for Open Source? Some Economic Policy Issues of the Software Market (July 12, 2002). Available at SSRN: http://ssrn.com/abstract=319081 or http://dx.doi.org/10.2139/ssrn.319081

Contact Information

Klaus M. Schmidt (Contact Author)
Ludwig-Maximilians-Universität München - Faculty of Economics ( email )
Ludwigstrasse 28
Munich, D-80539
Germany
+49 89 2180 3405 (Phone)
+49 89 2180 3510 (Fax)
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
HOME PAGE: http://www.CESifo.de
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Monika Schnitzer
University of Munich - Department of Economics ( email )
Ludwigstrasse 28
Munich, D-80539
Germany
+49 89 2180 2217 (Phone)
+49 89 2180 2767 (Fax)
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
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References:  26
Citations:  19

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