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Coexistence and Market Tipping in a Diffusion Model of Open Source vs. Proprietary Software

Riccardo Leoncini, Francesco Rentocchini and Giuseppe Vittucci Marzetti
p. 141-168

Abstracts

A large number of studies has been canvassed by the growing rates of diffusion of Open Source Software. However, a formal analysis of the process of competition between open-source and proprietary software is still missing. We propose an epidemic model of innovation diffusion to deal with the different factors (profits for proprietary software and developers’ motivations for open-source software) upon which such a process of competition ultimately depends. Moreover, we add network effects and switching costs, together with the endogenisation of the parameters of the speed of diffusion influencing the final outcome. We show the conditions for an asymptotically stable equilibrium to exist, where both softwares coexist. When the propagation coefficient is endogenous, winner-take-all solutions are also likely. sts for one software increases the number of its adopters, while reducing that of the other one. If the negative network effects increase for one of the two softwares, then the equilibrium level of users of that software decreases.

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Author's notes

Previous versions of the paper were presented to the PRIN workshop on "Fragmentation and local development : interpretative models and policy implications", University of Padua, 3-4 June 2008, to the EAEPE Conference, Rome, 6-8 November 2008, to the 3rd FLOSS International Workshop on "Free/Libre Open Source Software", Padua, 2-3 July 2009, and to INGENIO internal seminar series in Valencia.

References

Bibliographical reference

Riccardo Leoncini, Francesco Rentocchini and Giuseppe Vittucci Marzetti, “Coexistence and Market Tipping in a Diffusion Model of Open Source vs. Proprietary Software”Revue d'économie industrielle, 136 | 2011, 141-168.

Electronic reference

Riccardo Leoncini, Francesco Rentocchini and Giuseppe Vittucci Marzetti, “Coexistence and Market Tipping in a Diffusion Model of Open Source vs. Proprietary Software”Revue d'économie industrielle [Online], 136 | 4ème trimestre 2011, Online since 15 December 2013, connection on 16 April 2024. URL: http://journals.openedition.org/rei/5212; DOI: https://doi.org/10.4000/rei.5212

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About the authors

Riccardo Leoncini

University of Bologna and National Research Council

Francesco Rentocchini

University of Trento and Polytechnic University of Valencia

Giuseppe Vittucci Marzetti

University of Milano-bicocca

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Copyright

CC-BY-NC-ND-4.0

The text only may be used under licence CC BY-NC-ND 4.0. All other elements (illustrations, imported files) are “All rights reserved”, unless otherwise stated.

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