Group for Research in Decision Analysis

Some Ideas on a Dynamic Model on Closed- or Open-Source Software

Stefan Wrzaczek Vienna University of Technology, Austria

In this model we study a firm developing open-source software and earns money by selling a complementary product. We study the interaction with a competing firm who uses the source code as starting point for developing an own source code. The entrance of the second firm depends on the market situation. The first firm on the other hand anticipates the behavior of the second firm in order to maximize its own payoff.