Open Concentration Index: Measure of Market Concentration in Open Source Industry

Abstract

The market concentration is a measure of competition and, as such, is closely monitored by public competition authorities in the European Union or the United States. Among recent claims in Europe, we study the case of the mobile operating system Google Android, despite its open source quality and the fact it can as such be regarded as presenting no risk in terms of market dominance. In this research, we analyze the concept of market concentration. We suggest that when a dominant or significant participant is open, such as is the case for the Apache web server in the overall web server market, the negative effects of high concentration are mitigated. As such, a new market concentration metric is proposed that takes into account openness, as measured by the Open Governance Index of Liz Laffan. We thus combine a concentration index and a governance index described in literature to obtain Open Concentration Index suitable for open source context.