| Two papers constitute the research. The first paper models a two-sided software (OSS) with programmers and customers. Benefits to customers are derived from increased competition of OSS with a proprietary firm and the availability of the source code. The proprietary firm offers low end customers instruction with less functionality needed. The interactions between OSS firms with proprietary firms and the effects on prices, wages, and hiring of programmers are analyzed. The study suggests that profitability of the OSS depends on the externalities offered and differentiation.;The second paper deals with OSS forking. This occurs when "two" competing visions exist about development. A game theoretic model is used in the analysis. The conditions under which an OSS firm would benefit from developing a new software when forking occurs is explained. Findings suggest that the optimal choice of the OSS firm depends on the characteristics of OSS users. |
