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Economic Analysis Of The Impact Of The Open-Source Phenomenonupon The Market Structure Of The Software Industry

Posted on:2006-12-15Degree:MasterType:Thesis
Country:ChinaCandidate:J ZhengFull Text:PDF
GTID:2179360182983598Subject:Western economics
Abstract/Summary:PDF Full Text Request
The uprising and flourish of the Open-Source Movement is an importantphenomenon in the software industry since the 1990s. From the economicspoint of view, the Open-Source Software (OSS) is a public good which couldrealize full value transfer. Its emergence has brought a great impact upon thetraditional software industry, and offers a good opportunity for developingcountries to develop their downstream software industry.The present research of the OSS focuses mainly on three domains:incentive mechanism, policy intervention and market competition. Based onthe existing literature, this paper establishes two theoretic models to describethe market competition between the OSS and the Proprietary Software (PS).Models 1 analyzes the market structure changes when the OSS comes into amarket monopolized by the PS. Models 2 extends Model 1 by dividing thesuppliers into upstream firms and downstream firms. According to theconclusion of the analysis, it makes comments and suggestions for theChinese government to develop China's software industry.
Keywords/Search Tags:Market Structure, Network Effect, Open-Source, Software Industry, Upstream-Downstream
PDF Full Text Request
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