Main Site for MIT FLOSS Community (English)

Paper 1

Authors: Casadesus-Masanell, Ramon & Pankag Ghemawat

Title: Dynamic Mixed Duopoly: A Model Motivated by Linux vs. Windows

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Abstract: This paper analyzes a dynamic mixed duopoly in which a profit-maximizing
competitor interacts with a competitor that prices at zero (or marginal cost), with the cumulation of output affecting their relative positions over time. The modeling effort is motivated by interactions between Linux, an open-source operating system, and Microsofts Windows in the computer server segment, and consequently emphasizes demand-side learning effects that generate dynamic scale economies (or network externalities). Analytical characterizations of the equilibrium under such conditions are offered, and some comparative static and welfare effects are examined.

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Paper 2

Authors:Demil, Benoit & Xavier Lecocq

Title: Neither market or hierarchy or network: The emerging bazaar governance

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Abstract: Despite the growing body of literature describing the open-source phenomenon, few contributions have been theoretically grounded and research has largely focused on the software industry. Drawing on transaction cost economics, we go beyond these limitations and advance that open source constitutes a new generic governance structure?which we label bazaar governance? based on a specific contract. We characterize this structure in terms of its strengths and weaknesses and in comparison with market, firm and network structures. We consider how bazaar governance is actualized within an industry and the institutional entrepreneur