Economics of free software
Posted in Uncategorized on August 8th, 2005 by Peter FreibergAfter starting a course on Microeconomics for my uni course, it struck me how free software really doesn’t quite fit in.
I’m not an economist but here’s my take.
Subsitence/real world:
- Bob has 10 Apples
- Alice has 10 Oranges
They trade .. both barter 5 of each.
- Bob now has 5 apples, 5 oranges
- Alice now has 5 apples, 5 oranges
A physical handover has occured reducing what they originally had, but gaining something they didn’t.
Free Software world:
- Richard has an software
- Peter has nothing
Richard gives his software away. He still has the original quantity of software. Richard was going to use/create it anyway because he was solving a problem.
After barter:
- Richard still has his software
- Peter now has Richard’s software
Weird huh ?
So what are we trading here .. time ?
Probably with the key emphasis, for free software, that the author was going to write the software anyway. Maybe this sounds like freeloading ? In some ways it is. But the Author is possibly being rewarded or paid in non monetary terms like kudos, peer recognition, self promotion for potential jobs and opportunities.
So it does seem disproportional that software can be infinitely copied and used.
So maybe software is more like sharing knowledge or how to solve a problem, than actually a product.
It’s not like a builder who spends 1 month building a house. A house can’t be instantly copied and used by someone else. You don’t physically give something away.
But what about Quality ?
Quality is a reflection of the artesan or the group. Quality and time of implementation are not necessarily related. A more experienced artesan may produce a better result quicker than a more inexperienced player. People who have been doing something for longer will generally be better at it probably because they can reflect and find patterns in tasks. The path to quality workmanship and experience remain the same in both worlds.
So maybe this circles back to letting others who a better skilled at producing software to do so. And then hopefully learn from them. Maybe contributing to a software project helps gain that experience, and then give back a little of what has been taken. This then leads back to Writing software you need. So maybe the best contribution back (if you feel inclined) is to solve a problem you have.