Part 1: OpenSource Vs Proprietary Operating System

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Hey guys , which OS you use ?

Most probably Window . Let learn about Linux .

Linux, an open source operating system, has been the prominent example of the potential of the open source movement, competing against Microsoft Windows, the incumbent operating system.

In this article we talk about Window and Linux on following keywords :

Keywords:Open Source Software, operating systems, technology platforms, Linux, innovation incentives

Beyond the analysis of investment incentives, we also present a short case study comparing Windows vs. Linux along three dimensions: the client-side, the server-side and the interaction between the client-side and the server-side. We emphasize that the comparison between Windows and Linux is an issue of comparing two competing software ecosystems, not just two products.

The main findings of our analysis are the following.

1. First, the level of investment in the application is larger when the operating system is open source rather than proprietary, when the two operating systems are of equal quality.

2. Second, the level of investment in the operating system depends on a number of factors such as the strength of the reputation effects for the developers of the open source operating system, the ratio of developers within the total user population of the open source operating system, the level of investment in the applications within each ecosystem and the cost of adopting the open source operating system.An increase in one the first two factors leads to a relative increase in the investment
Linux vs. Windows 2009 in the open source operating system, while an increase in the fourth factor leads to a relative increase in the investment in the proprietary operating system.

We have four section here
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Section 1.  Related Literature

Section 2.  Discusses the case study of Windows vs. Linux and identifies some new research directions

Section 3. Develops the model and analyzes the innovation incentives in the two alternative software ecosystems, the open source and the proprietary one.

Section 4. Concludes the chapter

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Section 1: Related Literature

The literature on economics of open source focuses mainly on the individual incentives to participate in open source projects, the incentives of firms to adopt open source initiatives, the business models of firms operating within the open source landscape and the competitive implications of open source software (Lerner and Tirole 2004, Chapter 2 of this book).'

 Johnson (2002) models the contribution to an open source project as a problem of private provision of a public good and analyzes the effect of increasing the number of developers.

Lerner and Tirole (2001, 2002) discuss the incentives of individual programmers and software firms to participate in open source projects. They argue that programmers are motivated by "peer recognition" and delayed career benefits such as being hired by a software firm, or getting access to funding for future software ventures.

Mustonen (2003) proposes a model in which the participation of programmers in open source projects is endogenous and shows that a low implementation cost of an open source application is crucial for its survival when it competes with a proprietary application.

 Casadesus-Masanell and Ghemawat (2003) study a dynamic setting of competition between Windows and Linux.

 Bitzer (2004) analyzes why some software firms support Linux depending on the heterogeneity between Linux and the firms' commercial products.

 Economides and Katsamakas (2005) analyze the strategic differences between a proprietary and an open source technology platform and their competition.

Mustonen (2005) analyzes when a proprietary software firm may support the development of substitute open source software. 

Comino and Manenti (2005) assume informed and uninformed users about the existence of open source applications, and study the welfare implications of public policies supporting open
source software.

Perhaps the closest paper to this one is that of Bitzer and Schroder (2003), which also analyzes the innovation performance of open source and proprietary software development, see also Chapter 12.

 It shows that competition between open source and proprietary products leads to an increase in the level of technology of both products, as a result of increased investment. 

The focus of Bitzer and Schroder (2003) is on the effect of competition on innovation, while the
focus of our chapter is on a direct comparison of the innovation in the two alternative software ecosystems, which consist of application and operating system developers.

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