Open Source Software Development

This paper examines applies basic economic theory to Open Source Software Development. Through examination of rational actor behavior I show why economically motivated individuals and firms choose to develop code that to be given away freely. It also examines the various Open Source licenses, including the two most common, the Free Software Foundation?s General Public License (GPL) and Berkeley Software Distribution (BSD) License. Included are case studies to illustrate the workings of Open Source Software projects and how profit seeking firms have attached themselves to them. These case studies include the Apache Web Server, Mozilla, IBM, Microsoft?s Shared Source Initiative, and Red Hat. The associated business plans are also discussed. An executive summary precedes the paper and a glossary is attached to the end.