Template-Type: ReDIF-Paper 1.0
Author-Name: Stefano Colombo
Author-X-Name-First: Stefano
Author-X-Name-Last: Colombo
Author-Email: stefano.colombo@unicatt.it
Author-Workplace-Name: DISCE, Università Cattolica

Author-Name: Luca Grilli
Author-X-Name-First: Luca
Author-X-Name-Last: Grilli
Author-Email: 
Author-Workplace-Name: Politecnico di Milano

Author-Name: Cristina Rossi Lamastra
Author-X-Name-First: Cristina
Author-X-Name-Last: Rossi Lamastra
Author-Email: 
Author-Workplace-Name: Politecnico di Milano

Title: On the determinants of the degree of openness of Open Source firms: An entry model

Abstract: This paper examines the relationship between the degree of openness that software start-ups choose and some of the
main industrial features faced by new entrants. Hypotheses derived from a formal model are tested through the
implementation of econometric techniques and information provided by a novel database (ELISS). Theoretical
predictions and empirical results indicate that the choice by start-ups of the degree of openness is negatively influenced
by the sensitivity of consumers to price and is positively related both to the strength of network externalities their
products exhibit and to the competitive advantage of the incumbent.

Length: nn pages 19
Creation-Date: 2009-04

File-URL: http://www.unicatt.it/Istituti/EconomiaFinanza/Quaderni/ief0088.pdf
File-Format: Application/pdf
File-Function: First version, 2009
Number: ief0088
Classification-JEL: L13; L17; L86; 014
Keywords: open-source software; network effects; entry

Handle: RePEc:ctc:serie3:ief0088