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This paper analyzes a software market consisting of a freely available open source software (OSS), the commercial version of this OSS (OSS-SS), and the competing commercial proprietary software (PS). We find that in software markets characterized by low direct network benefits, the PS vendor is better off in the presence of competition from OSS-SS. Furthermore, the OSS-SS vendor in these markets is better off by having lower usability than PS. Therefore, the PS vendor has little incentive to improve the usability of their software in these markets. On the other hand, in software markets characterized by high network benefits, a PS vendor is threatened by the presence of OSS-SS and can survive only if the PS is more usable than the competing OSS-SS.

This book contributes new insights into the organization of free/open source (F/OS) software communities by examining the links between learning, division of labour and commercialization, demonstrating the need for a synthesis of work on both community organization and cooperation to understand F/OS community dynamics. These aspects are examined in the light of detailed case studies of the GNOME and KDE projects. This book offers an innovative theoretical framework, a critical assessment of various methodologies for examining the organisation of F/OS communities, and a typology of commercial involvement in F/OS. The analysis reveals the diversity and evolution of F/OS communities and their connections with other socio-economic networks and institutional practices. The insights afforded by the book have implications for future research and the design and implementation of open source efforts. 'This book provides a thorough academic treatise of the open source phenomenon from a multitude of viewpoints, with special emphasis of the under-researched topic of commercialization' Stefan Koch, Vienna University of Economics 'The ‘next steps in the open source revolution’ have been promised by many but few have laid the basic groundwork of connecting real examples from open source practice to actual concepts underpinned by strong theoretical ideas. This book is all the more commendable for succeeding in this far from trivial task' Brian Fitzgerald, University of Limerick Evangelia Berdou is Research Fellow at the Institute of Development Studies at the University of Sussex. She completed her Ph.D in the Department of Media and Communications at the London School of Economics and Political Science in 2007. Her thesis was awarded LSE's Robert McKenzie prize. Her Ph.D research was sponsored by the Greek State Scholarships Foundation (IKY) and focused on dynamics of commercialization and peripheral participation (integration of new developers and participation of non-programmers) in mature, community-led Free/Open Source software communities. From 2004-2007 she worked as a research assistant in the DBE (Digital Business Ecosystem) and OPAALS (Open Philosophies for Associative Autopoietic Digital Ecosystems) European funded projects. 1. Introduction 2. Technologies of Communities and Peer Production: Disentagling Power Relations in Fl/Oss Development 3. Fl/Oss as an Object of Research: Methodological and Disciplinary Issues 4. Commercial Involvement and Fl/Oss 5. The Community, the Firm and the Two Economies 6. Learning and the Division of Labour in Fl/Oss 7. The Story So Far: Technologies of Communities and Peer Production 8. Conclusions

Introduction -- Technologies of communities and peer production: disentagling power relations in FL/OSS development -- FL/OSS as an object of research : methodological and disciplinary issues -- Commercial involvement and FL/OSS -- The community, the firm and the two economies -- Learning and the division of labour in FL/OSS -- The story so far : technologies of communities and peer production -- Conclusions.

This book contributes new insights into the organization of free/open source (F/OS) software communities by examining the links between learning, division of labor and commercialization, demonstrating the need for a synthesis of work on both community organization and cooperation to understand F/OS community dynamics. These aspects are examined in the light of detailed case studies of the GNOME and KDE projects. This book offers an innovative theoretical framework, a critical assessment of various methodologies for examining the organization of F/OS communities, and a typology of commercial in

In enterprise software markets, firms are increasingly using services -based business models built on open-source software (OSS) to compete with established, proprietary software firms. Because third-party firms can also strategically contribute to OSS and compete in the services market, the nature of competition between OSS constituents and proprietary software firms can be complex. Moreover, their incentives are likely influenced by the licensing schemes that govern OSS. We study a three-player game and examine how open-source licensing affects competition among an open-source originator, an open-source contributor, and a proprietor competing in an enterprise software market. In this regard, we examine (1) how quality investments and prices are endogenously determined in equilibrium, (2) how license restrictiveness impacts equilibrium investments and the quality of offerings, and (3) how license restrictiveness affects consumer surplus and social welfare. Although some in the open-source community often advocate restrictive licenses such as the GNU General Public License because it is not always in the best interest of the originator for the contributor to invest greater development effort, such licensing can actually be detrimental to both consumer surplus and social welfare when it exacerbates this incentive conflict. We find such an outcome in markets characterized by software providers with similar development capabilities yet cast in favor of the proprietor. In contrast, when these capabilities either become more dispersed or remain similar but tilt in favor of open source, a more restrictive license instead encourages greater effort from the OSS contributor, leads to higher OSS quality, and provides a larger societal benefit. This paper was accepted by Chris Forman, information systems.

The literature on the private provision of public goods suggests an inverse relationship between incentives to contribute and group size. We find, however, that after an exogenous reduction of group size at Chinese Wikipedia, the nonblocked contributors decrease their contributions by 42.8 percent on average. We attribute the cause to social effects: contributors receive social benefits that increase with both the amount of their contributions and group size, and the shrinking group size weakens these social benefits. Consistent with our explanation, we find that the more contributors value social benefits, the more they reduce their contributions after the block. (JEL H41, L17, L82)

Geographic analysis has long supported transport plans that are appropriate to local contexts. Many incumbent ‘tools of the trade’ are proprietary and were developed to support growth in motor traffic, limiting their utility for transport planners who have been tasked with twenty-first century objectives such as enabling citizen participation, reducing pollution, and increasing levels of physical activity by getting more people walking and cycling. Geographic techniques—such as route analysis, network editing, localised impact assessment and interactive map visualisation—have great potential to support modern transport planning priorities. The aim of this paper is to explore emerging open source tools for geographic analysis in transport planning, with reference to the literature and a review of open source tools that are already being used. A key finding is that a growing number of options exist, challenging the current landscape of proprietary tools. These can be classified as command-line interface, graphical user interface or web-based user interface tools and by the framework in which they were implemented, with numerous tools released as R, Python and JavaScript packages, and QGIS plugins. The review found a diverse and rapidly evolving ‘ecosystem’ tools, with 25 tools that were designed for geographic analysis to support transport planning outlined in terms of their popularity and functionality based on online documentation. They ranged in size from single-purpose tools such as the QGIS plugin AwaP to sophisticated stand-alone multi-modal traffic simulation software such as MATSim, SUMO and Veins. Building on their ability to re-use the most effective components from other open source projects, developers of open source transport planning tools can avoid ‘reinventing the wheel’ and focus on innovation, the ‘gamified’ A/B Street https://github.com/dabreegster/abstreet/#abstreet simulation software, based on OpenStreetMap, a case in point. The paper, the source code of which can be found at https://github.com/robinlovelace/open-gat, concludes that, although many of the tools reviewed are still evolving and further research is needed to understand their relative strengths and barriers to uptake, open source tools for geographic analysis in transport planning already hold great potential to help generate the strategic visions of change and evidence that is needed by transport planners in the twenty-first century.

The principles of open collaboration for innovation (and production), once distinctive to open source software, are now found in many other ventures. Some of these ventures are Internet based: for example, Wikipedia and online communities. Others are off-line: they are found in medicine, science, and everyday life. Such ventures have been affecting traditional firms and may represent a new organizational form. Despite the impact of such ventures, their operating principles and performance are not well understood. Here we define open collaboration (OC), the underlying set of principles, and propose that it is a robust engine for innovation and production. First, we review multiple OC ventures and identify four defining principles. In all instances, participants create goods and services of economic value, they exchange and reuse each other’s work, they labor purposefully with just loose coordination, and they permit anyone to contribute and consume. These principles distinguish OC from other organizational forms, such as firms or cooperatives. Next, we turn to performance. To understand the performance of OC, we develop a computational model, combining innovation theory with recent evidence on human cooperation. We identify and investigate three elements that affect performance: the cooperativeness of participants, the diversity of their needs, and the degree to which the goods are rival (subtractable). Through computational experiments, we find that OC performs well even in seemingly harsh environments: when cooperators are a minority, free riders are present, diversity is lacking, or goods are rival. We conclude that OC is viable and likely to expand into new domains. The findings also inform the discussion on new organizational forms, collaborative and communal.

This paper examines whether open-source software (OSS) provides unique advantages in the entrepreneurial crowdfunding context. The economic model for new ventures with business plans centered on OSS is often counterintuitive to early-stage investors. On the one hand, the non-restrictive OSS approach reduces the barriers to widespread product adoption and collaboration; on the other, OSS is essentially a public good, creating a scenario where anyone can appropriate value from the product without compensating its creators. As such, an OSS approach can dissuade investors primarily concerned with appropriating value for themselves, making it difficult for early-stage OSS ventures to attract investors. However, the rapid rise of crowdfunding has created a communally minded investor base that might instead find OSS projects enticing. We theorize that the attributes of OSS projects align with the communal expectations of crowdfunding investors and thus create supportive environments for OSS-based ventures. We illustrate this alignment through the community-based resource mobilization framework and suggest that the OSS approach yields greater investor trust, leading to superior financing outcomes. Our mixed methods approach blends archival analyses of Kickstarter data with a constructive replication through a randomized experiment, providing consistent support that an OSS approach can be advantageous in the crowdfunding context.Plain English SummaryCan rewards-based crowdfunding open new doors to finance open-source software (OSS) projects? Our research suggests that crowdfunding backers are more likely to support OSS projects because they are perceived as more trustworthy. While the economic principles of OSS can be counterintuitive, OSS promotes widespread product adoption and collaboration. This allows anyone to benefit from OSS. Our research builds on the notion that crowdfunding, much like OSS, is a communal endeavor. We leverage data from the rewards-based crowdfunding platform Kickstarter.com and a controlled experiment, finding a connection between projects that espouse the OSS approach and crowdfunding success. The culmination of the two studies advances knowledge of the unique preferences of crowdfunding backers and suggests that the crowdfunding context is fertile ground to bring new insights into OSS-focused start-ups.