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| Author: | Qiu, L. D. |
| Title: | A general equilibrium analysis of software development: implications of copyright protection and contract enforcement |
| Journal: | European Economic Review
2006 : OCT, VOL. 50:7, p. 1661-1682 |
| Index terms: | software piracy copyright vertical integration contracts organization outsourcing |
| Language: | eng |
| Abstract: | A general equilibrium model is developed to analyze the implications of contract enforcement and copyright protection policies on software development. It is shown that contract enforcement determines the organizational mode of customized software development while copyright protection affects both packaged software and customized software development. When copyright protection is weak, only customized software will be developed, and when copyright protection is strong, both customized and packaged software will be developed. Furthermore, environment changes in one software market affect the equilibrium in the other software market. |
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