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Competition and innovation in a technology setting software duopoly

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dc.creator Schröder, Philipp J. H.
dc.creator Bitzer, Jürgen
dc.date 2003
dc.date.accessioned 2013-10-16T06:58:22Z
dc.date.available 2013-10-16T06:58:22Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/18122
dc.identifier ppn:375395717
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/18122
dc.description Recently the software industry has experienced fundamental changes in market structure through the entry of open source competitors, e.g. Linux?s entry into the operating systems market. In a simple model we examine the effects of such a change in market structure from monopoly to duopoly under the assumption that software producers compete in technology rather than price or quantities. The model includes the presence of technological progress and menu costs of adjusting existing software, i.e. innovation. It is found that: (i) moving from monopoly to duopoly does increase the technology level set by firms in the software industry; (ii) a duopoly adjusts more readily to global technological progress than a monopolist. Furthermore, results are presented comparing open source versus for-profit firms in terms of technology levels and innovation.
dc.language eng
dc.publisher Deutsches Institut für Wirtschaftsforschung (DIW) Berlin
dc.relation DIW-Diskussionspapiere 363
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject H41
dc.subject L86
dc.subject L31
dc.subject ddc:330
dc.subject open source software
dc.subject strategic interaction
dc.subject duopoly
dc.subject menu costs
dc.subject Softwareindustrie
dc.subject Open Source
dc.subject Duopol
dc.subject Innovationswettbewerb
dc.subject Anpassungskosten
dc.subject Theorie
dc.title Competition and innovation in a technology setting software duopoly
dc.type doc-type:workingPaper


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