Ramiro de Elejalde, Gastón Llanes.
International Journal of Industrial Organization.
2013.
We present a model of industry equilibrium to study the coexistence of open-source and proprietary firms. Two novel aspects of the model are (i) participation in open source arises as the optimal decision of profit-maximizing firms,and (ii) open-source and proprietary firms may (or may not) coexist in equilibrium. Firms decide their type and investment in R&D,and sell packages composed of….