During the '60s and the '70s, basically all software was Open Source and everyone was allowed to copy, modify and redistribute computer programs. When software ceased to be hardware-specific and the diffusion of computers took off, firms started to produce software independently from hardware...

This paper examines (1) recent decisions to implement open standards and open source software, (2) Microsoft's current response to these decisions, and (3) the possible effect of these decisions on Microsoft's market dominance. In particular, this paper compares and contrasts the Microsoft Open...

We study an endogenous growth model where a profit-motivated R and D sector coexists with the introduction of free blueprints invented by philanthropists. These goods are priced at marginal cost, contrary to proprietary ones which are produced by a monopoly owned by the inventor. We show that...

The rivalry between developers of open source and proprietary software encourages open source developers to court users and respond to their needs. If the open source developer wants to promote her own open source standard and solutions, she may choose liberal license terms such as those of the...

We develop a model to investigate the manner in which the pricing, profitability and protection strategies of the seller of a proprietary digital good respond to changing market conditions. Specifically, we investigate how the optimal strategy of a seller of proprietary software (such as...

Around 300 B.C., a Greek mathematician — Euclid — discovered a theorem on which modern geometry and a fundamental algorithm is based. The Euclid’s theorem represents a method for calculating the greatest common divisors between two integers. Since 300 B.C., both Euclid’s Theorem and...

Technology platforms, such as Microsoft Windows, are the hubs of technology industries. We develop a framework to characterize the optimal two-sided pricing strategy of a platform firm, that is, the pricing strategy towards the direct users of the platform as well as towards firms offering...

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...