20050729 present
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- 1. Economics of Free and Open Source in Thailand
2. Contents
- Studys structure
- Chapter 1 : Introduction
- Chapter 2 : History & Development and Literature review
3. Studys structure 4. Chapter 1 : Introduction
- An important of the study
- Objectives
- Scope
- Source of information
- Methodology
- Benefits
5. Source:NESDB ( ) 6. Source:NESDB ( ) 7. Source:NESDB ( ) 8. Rising of FOSS worldwide Source: NetCraft http://news.netcraft.com/archives/web_server_survey.html 9. Rising of FOSS worldwide 10. Objectives of the study
- To apply economic theory in order to explain :
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- Why FOSS work and exists
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- How can FIRM involve in FOSS
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- To study and compare a development of FOSS between Thailand and Foreign
- To study a direction to develop FOSS industry in Thailand, both Govs policy and Firms strategy
11. Scope
- A development of FOSS, with influences people both in government agency, firm and private, during 1999 present.
12. Source of information
- Secondary data via publish materials ie. Journal, magazine, newspaper, etc.
- A survey and interview.
13. Methodology
- Quantitative approach
- Qualitative approach
- Descriptive approach
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- A comparison between fact from survey and theorem prediction.
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14. Benefits
- Government : Get a basic idea and knowledge in conducting a policy.
- Firm : Get a basic idea and knowledge in order to set its strategy.
- Researcher : Get a basic literature, in order to improve a better knowledge.
15. Chapter 2 : History & Development and Literature review
- Meaning of FOSS
- History and development
- Definition
- Economics theory to explain FOSS
- Literature review
16. Meaning of FOSS
- Free software with available source code.
- Community is significant.
- Success or failure of the software depend on community activeness.
17. History & Development
- Birth of Unix era
- BSD era
- Linus Torvalds and Linux
- Open Source era
- Community role
- Software in different form
- Communitys character
18. Communitys character Source :Open Source : Beyond the Fairy tales Richard P. Gabriel Ron Goldman 19. Communitys character
- Available of source code
- Distribution of owner and control
- Scarcity of money, B/W and computer power but not man power
- Limited lock-in
- Software is not perfect;Tolerable
- Open KPI
- Professional attention
- Elegance code
- Ignorance of unskilled users
20. Definition of FOSS
- Open Source Initiative : Focus on collaboration and openness
- Free Software Foundation : Focus on Freedom
21. Economics Theory
- Near zero marginal cost
- Network externalities
- Critical mass
- Public goods & Free-riding
22. Near zero marginal cost Source :Microeconomics : Paul Krugman Robin Wills ,2004 23. Network externalities
- More users create more benefits. Consider Fax, Telephone and Mobile.
- On software :
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- Pool of experienced users and developer
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- More application available
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24. Critical mass Source :Microeconomics : Paul Krugman Robin Wills ,2004 25. Public goods & Free-riding Source:R.van Wendel de Joodeet al.2003 26. Literature review
- Explain why hacker produce public goods. R. van Wendel de Joode et al. (2003)
- Empirical study. Gosh, Rishab Aiyer et al. (2002)
- Balance between community and firm. R. van Wendel de Joode et al. (2003)
- Limitation in developing country. Weerawarana, Sanjiva and Weeratunga, Jivaka (2004)
- Core Literature. Bessen, James (2004)
27. Why hacker produce public goods
- Low contribution cost; internet infrastructure.
- Intangible benefits:
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- Direct needs
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- Fun
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- Reputation
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28. Empirical study Source: Free/Libre and Open Source Software : A developer survey Rishab Aiyer Goshet al. (2002) 29. Balancing : Firm force
- Patents
- Hire core developer
- Free-riding
- Commercialization
30. Balancing : Community force
- Law approach : GPL, no prove in court yet.
- Non law approach :
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- Beachheads
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- Boycott
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- Competition development
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- Power play
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- Release early, release frequently
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31. Limitation on developing country
- Problem in IP enforcement
- Lack of low cost and efficient internet infrastructure
- Low education infrastructure
- Freedom to access information
- Lack of English language understanding
- Lack of high skill developer pool
32. Core Literature : Firm involvement
- Open Source Software: Free Provision of Complex Public Goods. Bessen, James (2004).
- Based on model of innovations : Agion & Tiroles (1994)
- Which based on :
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- Foundation of incomplete contracts ; Hart & Moore (1999)
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- Complexity and renegotiation :A foundation for incomplete contracts ; Segal (1999)
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- A recent development as theory of incomplete contracts , pioneer by Oliver Hart
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- Branch of contract theory and information economics
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33. Assumption about software
- Software is a complex goods.
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- m features product, use or not use generate 2 mdifferent use-product.
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- Testing, Debugging and maintenance account for 82% of the cost of software.
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- Complexity-related cost also limit the ability of packaged software to meet all consumer needs. Some turn to custom programming or self develop.
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- Contract issue:
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- To write a contract to cover all features equal write the code itself.
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- Incomplete contract : certain transaction costs prevent some aspects of the future trade from being contracted ex ante (renegotiation in ex post).
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34. Self development vs. 1 on 1 contract Customer Developer invest Sell code Customer Self development 35. Pre-package software Developer Sell package Choice 1 : Customer get prepackage Profit of software firm Choice 2 : Customer self develop Firm optimum price Customer Customer Customer Customer Customer 36. Proprietary extension : API Developer Customer Customer Customer API develop Sell Pre package Pre package Pre package 37. Free/Open Source Customer Get source m* feature Develop m*+1 feature and contribute back Pool of FOSS developer and source 38. Conclusion
- FOSS is a Prepackages complement, not a direct competition.
- FOSS is suitable for skilled customer , which is niche market.
- Prepackage will focus to unskilled customer, which is mass market.
- Prepackage should decrease price; API wont exist.
- FOSS increase social welfare.