SGER: Promoting Free Market and Open Source Software Innovation Through Better Licensing

Regents Of The University Of Michigan - Ann Arbor, Ann Arbor MI

Investigators

Abstract

This SGER project will investigate the socially optimal tradeoffs between open and closed software licensing. In the context of software development, where there are complex interactions among economic vs. non-economic and controlled vs. free access, this work seeks to articulate the best use of software licenses that balance legitimate business interests against public interest in enhanced social welfare. There are two kinds of scientific contribution. The first is an expanded theory of two-sided network effects that explores how opening a software platform to complementary investment can benefit both those who develop and those who consume. Under this framework, a set of model parameters might be tuned so as to generalize certain existing licenses, while suggesting an opportunity space for new kinds of licenses. The second contribution is the coding of a browser-accessible model that allows dynamic simulation of the many tradeoffs involved. Openness of the models and deliverables help ensure relevance and accuracy of results. The social benefit of successful output is the potential to improve the quantity, accessibility, and growth of software, a valuable resource for users and developers, non-profits and for-profits alike.