Subject: [Fwd: Re: Hal's new white paper - Free Software/Public Sector]
From: Jerry Dwyer <gdwyer@dwyerecon.com>
Date: Mon, 22 Mar 2004 17:27:13 -0500



-------- Original Message --------
Subject: 	Re: Hal's new white paper - Free Software/Public Sector
Date: 	Mon, 22 Mar 2004 17:01:21 -0500
From: 	Jerry Dwyer <gdwyer@dwyerecon.com>
Reply-To: 	gdwyer@dwyerecon.com
To: 	David N. Welton <davidw@dedasys.com>
CC: 	fsb@crynwr.com
References: 	<8F19253D-7C12-11D8-939C-000A95A0B6CA@harvard.edu> 
<87r7vkd1w4.fsf@dedasys.com>



Sorry that they won't answer you. I haven't read all the paper, although 
I will, but I've looked over the relevant part.

There is a mathematical metaphor underlying the paper. Suppose that the 
world is a line, and that the line has length one. (Any other length 
would do just as well, so why not pick an easy one like unity?)  
Commercial software is located at zero and open-source software is 
located at the other end of the line -- unity. Hence, the apparent 
inverseness of commercial and open-source software in terms of 
transportation cost, where one cost is t(x) and the other is t(1-x), 
where x is the distance to zero and 1-x is the distance to the other end 
of the line -- unity.

Jerry Dwyer

David N. Welton wrote:

>L Jean Camp <jean_camp@harvard.edu> writes:
>
>  
>
>>  (Co-authored with Carl Shapiro.)  White paper describing some of
>>the economic issues surrounding open source and open standards
>>software and its adoption by the public sector.
>>    
>>
>
>Speaking of which, I've had a few questions about another paper on
>this same subject.  Maybe one of the more economics-oriented folks on
>this list could enlighten me, as the original authors seem to not
>respond to email (pity, because they live here in Padova).
>
>http://opensource.mit.edu/papers/cominomanenti.pdf
>
>
>        We assume for simplicity that the population of consumers is
>        of mass 1: a portion are the uninformed and the remaining 1 -
>        are the informed ones. Irrespectively on their type, consumers
>        are uniformly distributed on a unit length segment. A consumer
>        located at x [0, 1] gets a net utility from buying the closed
>        source software of
>
>                                Uc = v - tx - p,
>
>        where v is the gross utility from adopting the software, t is
>        a transportation cost and p is the price charged by the CSS
>        producer. t may be interpreted in many ways: the cost of
>        learning how to use the software, the installation cost or the
>        cost of adapting other software applications.  Similarly, the
>        consumer's net utility from adopting OSS is
>
>                               Uo = v - t(1 - x).
>
>Why should free software necessarily be the inverse of the proprietary
>software?
>
>Sorry if the answer is blindingly obvious to those trained in this
>field.
>
>Thankyou for your time,
>  
>