The impact of commercial open source software on proprietary software producers and social welfare
<p><strong>Purpose:</strong> A growing number of commercial open source software, based on free open source software, appears in many segments of software market. The purpose of this study is to investigate how commercial open source software affects proprietary software producer’s...
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| Format: | Article |
| Language: | English |
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OmniaScience
2014-10-01
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| Series: | Journal of Industrial Engineering and Management |
| Subjects: | |
| Online Access: | http://www.jiem.org/index.php/jiem/article/view/1260 |
| _version_ | 1818179489195098112 |
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| author | Mingqing Xing |
| author_facet | Mingqing Xing |
| author_sort | Mingqing Xing |
| collection | DOAJ |
| description | <p><strong>Purpose:</strong> A growing number of commercial open source software, based on free open source software, appears in many segments of software market. The purpose of this study is to investigate how commercial open source software affects proprietary software producer’s pricing (market share or profit), consumer surplus and social welfare.</p> <p><strong>Design/methodology:</strong> To analyze the impact of commercial open source software on proprietary software producer, this study constructs two vertical-differentiation models: the basic model considers proprietary software only competing with free open source software, and its extended one considers proprietary software competing with both free and commercial open source software.</p> <p><strong>Findings:</strong> This study mainly finds that the presence of commercial open source software leads to the software price and profit for proprietary software producer decrease and the consumer surplus and social welfare increase. However, it does not necessarily cause the decline in the market share for proprietary software producer.</p> <strong>Originality/value:</strong> The main contribution of this study is to examine the effect of commercial open source software on proprietary software producer’s competitive strategy, consumer surplus and social welfare. |
| first_indexed | 2024-12-11T21:04:41Z |
| format | Article |
| id | doaj.art-bd1a1a53a95f4cd9bc285513ba543c1b |
| institution | Directory Open Access Journal |
| issn | 2013-8423 2013-0953 |
| language | English |
| last_indexed | 2024-12-11T21:04:41Z |
| publishDate | 2014-10-01 |
| publisher | OmniaScience |
| record_format | Article |
| series | Journal of Industrial Engineering and Management |
| spelling | doaj.art-bd1a1a53a95f4cd9bc285513ba543c1b2022-12-22T00:50:53ZengOmniaScienceJournal of Industrial Engineering and Management2013-84232013-09532014-10-01751183119610.3926/jiem.1260300The impact of commercial open source software on proprietary software producers and social welfareMingqing Xing0Weifang University<p><strong>Purpose:</strong> A growing number of commercial open source software, based on free open source software, appears in many segments of software market. The purpose of this study is to investigate how commercial open source software affects proprietary software producer’s pricing (market share or profit), consumer surplus and social welfare.</p> <p><strong>Design/methodology:</strong> To analyze the impact of commercial open source software on proprietary software producer, this study constructs two vertical-differentiation models: the basic model considers proprietary software only competing with free open source software, and its extended one considers proprietary software competing with both free and commercial open source software.</p> <p><strong>Findings:</strong> This study mainly finds that the presence of commercial open source software leads to the software price and profit for proprietary software producer decrease and the consumer surplus and social welfare increase. However, it does not necessarily cause the decline in the market share for proprietary software producer.</p> <strong>Originality/value:</strong> The main contribution of this study is to examine the effect of commercial open source software on proprietary software producer’s competitive strategy, consumer surplus and social welfare.http://www.jiem.org/index.php/jiem/article/view/1260competitionopen source softwarecommercial open source softwareproprietary softwaresoftware usability |
| spellingShingle | Mingqing Xing The impact of commercial open source software on proprietary software producers and social welfare Journal of Industrial Engineering and Management competition open source software commercial open source software proprietary software software usability |
| title | The impact of commercial open source software on proprietary software producers and social welfare |
| title_full | The impact of commercial open source software on proprietary software producers and social welfare |
| title_fullStr | The impact of commercial open source software on proprietary software producers and social welfare |
| title_full_unstemmed | The impact of commercial open source software on proprietary software producers and social welfare |
| title_short | The impact of commercial open source software on proprietary software producers and social welfare |
| title_sort | impact of commercial open source software on proprietary software producers and social welfare |
| topic | competition open source software commercial open source software proprietary software software usability |
| url | http://www.jiem.org/index.php/jiem/article/view/1260 |
| work_keys_str_mv | AT mingqingxing theimpactofcommercialopensourcesoftwareonproprietarysoftwareproducersandsocialwelfare AT mingqingxing impactofcommercialopensourcesoftwareonproprietarysoftwareproducersandsocialwelfare |