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[News] New Paper on the Economics of Free Software

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The Economic Motivation of Open Source Software: Stakeholder Perspectives

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| Abstract: Open source software has changed the rules of the game, impacting 
| significantly the economic behavior of stakeholders in the software 
| ecosystem. In this new environment, developers strive to be committers, 
| vendors feel pressure to produce open source products, and system integrators 
| anticipate boosting profits.    
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http://www.riehle.org/2008/07/20/the-economic-motivation-of-open-source-software-stakeholder-perspectives/

"That would be because we believe in Free Software and doing the right thing (a
practice you appear to have given up on). Maybe it is time the term 'open
source' also did the decent thing and died out with you."

                                        --Alan Cox to Eric Raymond


Related:

WhatTheyThink.com's Economics and Research Center

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| Other small devices with an eye toward connectivity include the Asus Eee; the 
| company expects to sell 5 million units this year, worldwide. The typical 
| configuration sells for $400. About 60% will be Windows XP-based, with the 
| balance using Xandros Linux. Other products include the Intel Classmate, 
| Everex Cloudbook, and the OLPC (One Laptop Per Child) computers. The Everex 
| and OLPC run Linux. There has also been significant progress in the 
| development of 3D applications that make reading and navigating on these 
| devices easier and more like a book or magazine.  FFEI, the FujiFilm Graphics 
| spin-out, and Dalim’s Virtual Library are two examples.        
`----

http://members.whattheythink.com/home/drjoe221.cfm


The Best Things in Life Are Free

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| The problem for many software companies is that free and open source is
| not some special characteristic of software. It's a development and
| deployment model and it stems from both ideology (e.g., the Free
| Software Foundation) and the economics of commoditization, with the
| economic factor being the bigger force. Because the economics of
| commodities are driving the industry, you can expect to see the market
| share of mature software businesses erode as open source expands.
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http://www.dmreview.com/article_sub.cfm?articleId=1063881


Microsoft and the Broken Window Theory of Economics

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| While we don't usually report on anything Microsoft related (as it's
| outside PCBurn's perview) this tidbit was too good for me to pass up.
| Microsoft is reporting (at El Reg) that by releasing an operating system
| it will magically create $40 Billion dollars rather than simply suck
| money out of Europe. They've done this by positing a story somewhat
| similar to the theory of "broken window" economics.
| 
| [...]
| 
| In short form, a boy breaks a window and his father, the shop keeper,
| then has to have it replaced. It is a given to the people looking on
| the scene that this is good becuase it keeps the glazier employed in
| making windows. 
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http://pcburn.com/article.php?sid=1788
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