Currently two models of innovation are prevalent in organization science. The "private investment" model assumes returns to the innovator results from private goods and efficient regimes of intellectual property protection. The "collective action" model assumes that under conditions of market failure, innovators collaborate in order to produce a public good. The phenomenon of open source software development shows that users program to solve their own as well as shared technical problems, and freely reveal their innovations without appropriating private returns from selling the software. In this paper we propose that open source software development is an exemplar of a compound model of innovation that contains elements of both the private investment and the collective action models. We describe a new set of research questions this model raises for scholars in organization science. We offer some details regarding the types of data available for open source projects in order to ease access for researchers who are unfamiliar with these, and also offer some advice on conducting empirical studies on open source software development processes.

Open Source Software and the 'Private-Collective' Innovation Model: Issues for Organization Science

Currently, two models of innovation are prevalent in organization science. The "private investment" model assumes returns to the innovator result from private goods and efficient regimes of intellectual property protection. The "collective action" model assumes that under conditions of market failure, innovators collaborate in order to produce a public good. The phenomenon of open source software development shows that users program to solve their own as well as shared technical problems, and freely reveal their innovations without appropriating private returns from selling the software. In this paper, we propose that open source software development is an exemplar of a compound "private-collective" model of innovation that contains elements of both the private investment and the collective action models and can offer society the "best of both worlds" under many conditions. We describe a new set of research questions this model raises for scholars in organization science. We offer some details regarding the types of data available for open source projects in order to ease access for researchers who are unfamiliar with these, and also offer some advice on conducting empirical studies on open source software development processes.

/pdf/open-source-software-and-the-private-collective-innovation-39vdswaq9v.pdf

Open Source Software and the Private-Collective Innovation Model: Issues for Organization Science

Trust and reciprocity : interdisciplinary lessons from experimental research

Using findings from evolutionary psychology, game theory, and laboratory experiments, the authors examine the importance of reciprocal relationships in explaining the origins of trust and trustworthy behaviour. The common thesis proposes that humans benefit through the development of relationships based on trust. Trust is essential to economic and social transactions that require individuals to behave in cooperative and reciprocal ways.

Toward a behavioral theory linking trust, reciprocity, and reputation.

This article provides an overview of the effects of communication on experimental studies of behavior and outcomes in common-pool resource (CPR) dilemmas. Aggregate outcomes in CPR dilemmas without communication approximate predictions of non-cooperative game theory, but allowing cheap talk results in higher outcomes. When exogenous rules are monitored at realistic levels, subjects cheat even though following the rule would generate optimal outcomes. If given the opportunity, experimental subjects will devise their own rule systems and impose sanctions on each other. These findings complement field research on more complex resources and communities by confirming the critical importance of communication and endogenous rule formation.

https://www.public.asu.edu/~majansse/dor/ostrom2006.pdf

The value-added of laboratory experiments for the study of institutions and common-pool resources

Face-to-face communication is investigated as an efficiency-enhancing mechanism in experimental common-pool resource environments in which the appropriation activities of outside appropriators create coordination and monitoring problems for the communicating group. We identify three distinct problems that can threaten successful collective action. Outsiders respond strategically to reductions in appropriation by cooperating group members. Members of the communicating group deviate from agreements more frequently when monitoring is imperfect and over appropriation can be blamed on outsiders. Groups that are allowed to communicate anticipate the potential problems and have difficulty reaching agreements or committing to a specific appropriation rule.

Collective Action with Incomplete Commitment: Experimental Evidence

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Collective Action with Incomplete Commitment: Experimental Evidence