Reading: Dynamic mixed duopoly: A model motivated by Linux vs. Windows

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Dynamic mixed duopoly: A model motivated by Linux vs. Windows

Authors

Casadesus-Masanell, Ramon Ghemawat, Pankaj

Summary

"This paper analyzes a dynamic mixed duopoly in which a profit-maximizing competitor interacts with a competitor that prices at zero (or marginal cost), with the cumulation of output affecting their relative positions over time. The modeling effort is motivated by interactions between Linux, an open-source operating system, and Microsoft's Windows in the computer server segment, and consequently emphasizes demand-side learning effects that generate dynamic scale economies (or network externalities). Analytical characterizations of the equilibrium under such conditions are offered, and some comparative static and welfare effects are examined."

Citation

Asadesus-Masanell, Ramon & Ghemawat, Pankaj, 2003. "Dynamic mixed duopoly: A model motivated by Linux vs. Windows," IESE Research Papers D/519, IESE Business School.


Links

http://ideas.repec.org/p/ebg/iesewp/d-0519.html

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