The University of Southampton
University of Southampton Institutional Repository

Coexistence and market tipping in a diffusion model of open source vs. proprietary software

Coexistence and market tipping in a diffusion model of open source vs. proprietary software
Coexistence and market tipping in a diffusion model of open source vs. proprietary software
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.

Résumé

La diffusion croissante de logiciels libres a motivé de nombreuses études. La littérature ne propose cependant pas encore d’analyse formelle de la concurrence entre logiciels Open-Source et propriétaires. Nous présentons un modèle épidémiologique de diffusion de l’innovation intégrant les différents facteurs (les profits du coté des logiciels propriétaires et les motivations des développeurs coté logiciels libres) sur lesquels repose le processus concurrentiel. Nous y adjoignons la prise en compte d’effets de réseaux et des coûts de changement de technologie, et rendons endogènes les paramètres relatifs à la vitesse de diffusion influençant le revenu final. Nous établissons les conditions d’existence d’un équilibre stable, tel que les deux types de logiciels coexistent. Quand le coefficient de propagation est endogène, les solutions de type winner-takes-all sont les plus probables.
increasing returns, model of diffusion, open-source software, technological competition, concurrence technologique, logiciel libre, modèle de diffusion, rendements croissants
0154-3229
141-168
Leoncini, Riccardo
e55b4df1-f510-4426-88b5-fb33457da91d
Rentocchini, Francesco
8ee609a8-8a3f-4a86-94be-5050f7d8c1cb
Vittucci Marzetti, Giuseppe
7491d078-202f-4eed-ae32-68dd3ad7d0a4
Leoncini, Riccardo
e55b4df1-f510-4426-88b5-fb33457da91d
Rentocchini, Francesco
8ee609a8-8a3f-4a86-94be-5050f7d8c1cb
Vittucci Marzetti, Giuseppe
7491d078-202f-4eed-ae32-68dd3ad7d0a4

Leoncini, Riccardo, Rentocchini, Francesco and Vittucci Marzetti, Giuseppe (2011) Coexistence and market tipping in a diffusion model of open source vs. proprietary software. Revue d'Economie Industrielle, 136 (4), 141-168. (doi:10.4000/rei.5212).

Record type: Article

Abstract

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.

Résumé

La diffusion croissante de logiciels libres a motivé de nombreuses études. La littérature ne propose cependant pas encore d’analyse formelle de la concurrence entre logiciels Open-Source et propriétaires. Nous présentons un modèle épidémiologique de diffusion de l’innovation intégrant les différents facteurs (les profits du coté des logiciels propriétaires et les motivations des développeurs coté logiciels libres) sur lesquels repose le processus concurrentiel. Nous y adjoignons la prise en compte d’effets de réseaux et des coûts de changement de technologie, et rendons endogènes les paramètres relatifs à la vitesse de diffusion influençant le revenu final. Nous établissons les conditions d’existence d’un équilibre stable, tel que les deux types de logiciels coexistent. Quand le coefficient de propagation est endogène, les solutions de type winner-takes-all sont les plus probables.

Text
LeonciniRentocchiniEtAl2011.pdf - Author's Original
Restricted to Registered users only
Download (244kB)
Request a copy

More information

Published date: 2011
Keywords: increasing returns, model of diffusion, open-source software, technological competition, concurrence technologique, logiciel libre, modèle de diffusion, rendements croissants
Organisations: Strategy, Innovation & Entrepreneurship

Identifiers

Local EPrints ID: 357279
URI: http://eprints.soton.ac.uk/id/eprint/357279
ISSN: 0154-3229
PURE UUID: aeadafe1-6330-4c55-9187-957efcbd4309

Catalogue record

Date deposited: 04 Oct 2013 15:23
Last modified: 14 Mar 2024 14:57

Export record

Altmetrics

Contributors

Author: Riccardo Leoncini
Author: Giuseppe Vittucci Marzetti

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×