We study competitive interaction between profit-maximizing firms thatsell software and complementary goods or services. In addition totactical price competition, we allow firms to compete through businessmodel reconfigurations. We consider three business models: theproprietary model (where all...

Traditionally the protection of intellectual property is regarded as a pre-condition for value capture. The rise of open source (OS) software and OStangible products, so-called open design, has challenged this understand-ing. Openness is often regarded as a dichotomous variable (open-source...