PACIS 2022 Proceedings

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Abstract

Motivated by the success of the open-source software movement such as Linux, Apache etc., there has been open-source hardware movements in which both the hardware schematics and related software source codes are open. In those open-source hardware products, it is legally possible to create a compatible and/or a higher performance product based on the schematics of the genuine product. The manufacturer of those compatible products can reduce the cost of creating schematics and related software, which means that it can offer products with lower prices. Thus, the genuine product faces the price competition with those compatible ones. According to economic theory, the genuine product cannot survive in the market. In the market, however, there seems some coexistence between the genuine product and compatible ones. We carried out the preference survey and found that there are some amounts of people to choose the genuine product regardless of the price.

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