A General Equilibrium Analysis of Software Development : Copyright Protection and Contract Enforcement
نویسندگان
چکیده
We develop a model to study the implications of a legal environment on the organization of software production. We show that contract enforcement a®ects the organizational mode (i.e., in-house versus outsourcing) of customized software development while copyright protection determines the introduction of package software. When copyright protection is weak, only customized software will be developed. When copyright protection is strong, both customized software and packaged software will be developed. JEL Classi ̄cation No.: L22, L24, L86, D23
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Software Development and Trade
We develop a model to study the implications of a legal environment on software development and international trade. We show that the degree of contract enforcement a®ects the organizational mode (i.e., in-house or outsourcing) of customized software development. In autarky, a country with weak copyright protection develops customized software only, while a country with strong copyright protect...
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