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Reciprocity |
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the industry, allowing firms to purchase hardware and equipment and compensating the time of administrators. Popularity and visibility can have a big impact on the amount of donations received. A popular application often generates much more in donations than the distributors ask for.
Surprisingly, the most commonly cited reason for using open-source software is to reduce the dependence on privately licensed software providers. Thus, one might decide to use an open-source word-processing program to free oneself from Microsoft or other vendors who they feel overcharge or use barriers (like lack of backward compatibility) to force paid upgrades. A survey by Computer Economics suggests that only 20 percent of firms using open-source software cite the cost savings as the primary reason for their decision. Though the software is directly free, often converting to the new software and maintaining and supporting it are not at all free. Though other explanations exist, it appears that reciprocity plays a major role in the existence, use of, and donations to support open-source efforts.
History and Notes
In the seminal work of economics, Adam Smith’s An Inquiry into the Nature and Causes of the Wealth of Nations, Smith wrote extensively about the
importance of trust in economic behavior. For example, Smith supposes that those engaged in commerce would be much more willing to engage in domestic trades given that they are more familiar with the people with whom they are dealing and can thus trust them. Alternatively, when dealing with foreign entities the person might need to charge a premium to overcome the distrust she might have for the foreign entity because she is unfamiliar with it. Moreover, Smith acknowledges the role of institutions, such as governments, in encouraging and establishing an environment in which trust can flourish. When people deal domestically, they are also familiar with the legal system and might know what recourse is available should they be dealt with deceitfully. This is not always clear when dealing in foreign markets, where governments might have different standards or practices in distributing justice.
Smith also wrote about the impact of charity in securing the good feelings and devotion of others. Specifically, he documents how providing food to the poor or others who were needy had led monasteries to a position of prominence. People felt obliged to protect the church at great expense, often because they had been supported at some time by the church’s charitable efforts. The clergy’s respected place made it difficult even for a sovereign king to threaten or diminish the clergy in any respect. Truly, trust and reciprocity have played a central role in history and in the creation of the institutions, governments, and societies of which we are a part.
