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Competition Among Proprietary and Open-Source Software Firms: The Role of Licensing in Strategic Contribution
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.
Journal Article
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\"After spending the summer at coding camp, Allie Navarro is excited to share the app she built with her friends, until it starts to cause problems between them\"-- Provided by publisher.
Book
First international Competition on Runtime Verification: rules, benchmarks, tools, and final results of CRV 2014
The first international Competition on Runtime Verification (CRV) was held in September 2014, in Toronto, Canada, as a satellite event of the 14th international conference on Runtime Verification (RV’14). The event was organized in three tracks: (1) offline monitoring, (2) online monitoring of C programs, and (3) online monitoring of Java programs. In this paper, we report on the phases and rules, a description of the participating teams and their submitted benchmark, the (full) results, as well as the lessons learned from the competition.
Journal Article
CoCo 2019: report on the eighth confluence competition
We report on the 2019 edition of the Confluence Competition, a competition of software tools that aim to prove or disprove confluence and related (undecidable) properties of rewrite systems automatically.
Journal Article
Impact of Cyberattacks by Malicious Hackers on the Competition in Software Markets
The number of malicious hacking incidents in our increasingly IT-enabled world has been increasing over the years. Conventional wisdom focuses on negative impacts of these malicious hacker activities. We posit that malicious hacker activities also might lead to some unintended consequences, specifically related to altering of software market structure, and associated stakeholder consequences. In this study, we model the competition between two software platforms in the presence of malicious hackers who perform cyberattacks against one or both software platforms. We compare a benchmark case where malicious hackers are either absent, or if present do not target the software platforms, against a first scenario where only one software platform is targeted, and a second scenario where both software platforms are targeted. Interestingly, we find the presence of malicious hackers' activities is not always detrimental to all software industry stakeholders. In general, the results suggest that the presence of malicious hackers is more likely to result in a competitive market, while their absence is more likely to result in a monopoly. Furthermore, we show that under certain market conditions, the unsecure software platform targeted by hackers potentially can drive its more secure competitor out of the market.
Journal Article
Study of the efficiency of model checking techniques using results of the MCC from 2015 To 2019
In various scientific communities dealing with formal analysis, software competitions have emerged and contributed to fostering progress in state of the art and providing insight into the evolution of the involved technologies. The model checking contest (MCC) is one of them; it focuses on asynchronous concurrent systems. This paper reports what the organizers have observed over five editions of the MCC between 2015 and 2019. It shows the evolution of state-of-the-art model checking tools in performing large and difficult verification tasks by improving existing techniques or designing new and innovative (combinations of) techniques. This paper also shows the impact of such an event on the corresponding scientific community.
Journal Article
Security Investment and Pricing Decisions in Competitive Software Markets: Bug Bounty and In-House Strategies
In increasingly competitive digital markets, software firms must strategically balance cybersecurity investments and pricing decisions to attract consumers while safeguarding their platforms. This study develops a game-theoretic model in which two competing firms choose among three cybersecurity strategies—no action, bug bounty programs, and in-house protection—before setting prices. We demonstrate that cybersecurity efforts and pricing are interdependent: investment choices significantly alter market outcomes by influencing consumer trust and competitive dynamics. Our analysis reveals that a bug bounty program is preferable when consumer sensitivity to security and the probability of ethical vulnerability disclosures are high, while in-house protection becomes optimal when firms must rebuild credibility from a weaker competitive position. Furthermore, initial service quality gaps between firms critically shape both investment intensity and pricing behavior. By jointly endogenizing security efforts and prices, this study offers new insights into strategic cybersecurity management and provides practical guidance for software firms seeking to integrate security initiatives with competitive pricing strategies.
Journal Article
A Strategic Analysis of Competition Between Open Source and Proprietary Software
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.
Journal Article
Generating Musical Performances with Director Musices
Describes the Director Musices software, a program that tranforms notated scores into musical performances and incorporates knowledge derived from years of research in the Speech, Music and Hearing department at the Royal Institute of Technology in Stockholm. Summarizes a number of rules governing musical expression. States that the program attempts to model phrasing, articulation, and intonation to bestow a more lifelike demeanor upon an automatically performed score. Includes tables and illustrations.
Journal Article