Networked innovation and coalition formation: the effect of group-based social preferences

Tom Dedeurwaerdere, Paolo Melindi-Ghidi, Willem Sas
2017 Economics of Innovation and New Technology  
In this paper we study the production and dissemination of public knowledge goodssuch as technological knowledge -generated by a network of voluntarily cooperating innovators. We develop a private-collective model of public knowledge production in networked innovation systems, where group-based social preferences have an impact on the coalition formation of developers. Our model builds on the large empirical literature on voluntary production of pooled public knowledge goods, including source
more » ... de in communities of software developers or data provided to open access data repositories. Our analysis shows under which conditions social preferences such as 'group belonging' or 'peer approval' influence the stable coalition size, as such rationalising several stylised facts emerging from large scale surveys of open-source software developers, previously unaccounted for. Furthermore, heterogeneity of social preferences is added to the model to study the formation of stable, but mixed coalitions.
doi:10.1080/10438599.2017.1378163 fatcat:yzjivxfxlregjjh32tuxwxpxne