39 Pages Posted: 27 Apr 2000
Date Written: October 2000
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," can explain many of these projects' features. Aspects of the future of open source development process, however, remain somewhat difficult to predict with "off-the-shelf" economic models.
JEL Classification: L22, L31, L86
Suggested Citation: Suggested Citation
Tirole, Jean and Lerner, Josh, The Simple Economics of Open Source (October 2000). HBS Finance Working Paper No. 00-059. Available at SSRN: https://ssrn.com/abstract=224008 or http://dx.doi.org/10.2139/ssrn.224008
By James Bessen
By Josh Lerner