The Simple Economics of Open Source

Working Paper: NBER ID: w7600

Authors: Josh Lerner; Jean Tirole

Abstract: There has been a recent surge of interest in open source software development, which involves developers at many different locations and organizations sharing code to develop and refine programs. To an economist, the behavior of individual programmers and commercial companies engaged in open source projects is initially startling. This paper makes a preliminary exploration of the economics of open source software. We highlight the extent to which labor economics, especially the literature on career concerns,' can explain many of these projects' features. Aspects of the future of open source development process, however, remain somewhat difficult to predict with off-the-shelf' economic models.

Keywords: Open Source Software; Labor Economics; Innovation

JEL Codes: L22; L31; L86


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
Desire for social recognition (D91)Level of individual contribution to open source projects (L17)
Structure of the open source community (L17)Behavior of contributors (D16)

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