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Rise of the Network Society
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Organization Science
Hyper-Differentiation Strategies: Delivering Value, Retaining Profits
HICSS '03 Proceedings of the 36th Annual Hawaii International Conference on System Sciences (HICSS'03) - Track 8 - Volume 8
Poaching and the Misappropriation of Information: Transaction Risks of Information Exchange
HICSS '04 Proceedings of the Proceedings of the 37th Annual Hawaii International Conference on System Sciences (HICSS'04) - Track 8 - Volume 8
Shifting Innovation to Users via Toolkits
Management Science
Mechanism Design to Promote Free Market and Open Source Software Innovation
HICSS '05 Proceedings of the Proceedings of the 38th Annual Hawaii International Conference on System Sciences - Volume 08
HICSS '06 Proceedings of the 39th Annual Hawaii International Conference on System Sciences - Volume 08
Working for Free? Motivations for Participating in Open-Source Projects
International Journal of Electronic Commerce
Determinants of the Choice of Open Source Software License
Journal of Management Information Systems
Designing markets for co-production of digital culture goods
Decision Support Systems
The complex problem of monetizing virtual electronic social networks
Decision Support Systems
Design and Use of Preference Markets for Evaluation of Early Stage Technologies
Journal of Management Information Systems
Consumer Empowerment Through Internet-Based Co-creation
Journal of Management Information Systems
User commitment and collaboration: Motivational antecedents and project performance
Information and Software Technology
Pricing strategies for tied digital contents and devices
Decision Support Systems
Co-Creation: Toward a Taxonomy and an Integrated Research Perspective
International Journal of Electronic Commerce
Adoption and Diffusion of Business Practice Innovations: An Evolutionary Analysis
International Journal of Electronic Commerce
The Power of Patterns and Pattern Recognition When Developing Information-Based Strategy
Journal of Management Information Systems
How can software support open innovation? Extending community and marketplace perspectives
International Journal of Networking and Virtual Organisations
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This paper examines new forms of collaboration between producers and consumers that are emerging in the digital entertainment space. Taking the case of the video game industry, we show how some firms have opened a portion of their proprietary content for transformation by consumers and allowed the development of consumer-designed and consumer-implemented derivative products. By reappropriating these derivatives, video game firms are successfully outsourcing parts of their game design and development process to digital consumer networks. Applying economic analysis, we explore the potential benefits and risks associated with outsourcing to networks of consumers. We also derive the optimal combination of copyright enforcement and consumer compensation. Our results suggest that profit-maximizing producers of video games have incentive to partially open game content to their users and to remunerate the most innovative ones, under the condition that the derivatives constitute complements to, and not substitutes for, the original product. We discuss the implications on firm strategy for innovation.