The Cathedral & the Bazaar

Chapter 4. The Magic Cauldron

This essay analyzes the evolving economic substrate of the open-source phenomenon. I first explode some prevalent myths about the funding of program development and the price structure of software. I then present a game-theory analysis of the stability of open-source cooperation. I present nine models for sustainable funding of open-source development; two non-profit, seven for-profit. I then continue to develop a qualitative theory of when it is economically rational for software to be closed. I then examine some novel additional mechanisms the market is now inventing to fund for-profit open-source development, including the reinvention of the patronage system and task markets. I conclude with some tentative predictions of the future.

Indistinguishable From Magic

In Welsh myth, the goddess Ceridwen owned a great cauldron that would magically produce nourishing food—when commanded by a spell known only to the goddess. In modern science, Buckminster Fuller gave us the concept of “ephemeralization”, technology becoming both more effective and less expensive as the physical resources invested in early designs are replaced by more and more information content. Arthur C. Clarke connected the two by observing that “Any sufficiently advanced technology is indistinguishable from magic”.

To many people, the successes of the open-source community seem like an implausible form of magic. High-quality software materializes “for free”, which is nice while it lasts but ...