Archive for July 11th, 2014

July 11, 2014

Open-source Economics

Yochai Benkler by Judith Carnaby

global village construction set

Open-source economics is an economic platform (a two-sided market with two distinct user groups that provide each other with network benefits) based on open collaboration for the production of software, services, or other products. First applied to the open-source software industry, this economic model may be applied to a wide range of enterprises. The system requires work or investment to be carried out without an expressed expectation of return; products or services are produced through collaboration between users and developers; there is no direct individual ownership of the enterprise itself.

The structure of open source is based on user participation. According to technology law professor Yochai Benkler, ‘networked environment makes possible a new modality of organizing production: radically decentralized, collaborative, and non-proprietary; based on sharing resources and outputs among widely distributed, loosely connected individuals who cooperate with each other without relying on either market signals or managerial commands.’

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