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Economics 243 Fall 2018

Open Source Code – Reducing Technology Costs

Online retailer Flipkart is looking to cut down on technology refinement costs by opening its technology platforms to software coders.  Making its source code open source allows firms or individuals to freely create new applications for the entire ecommerce industry.  The company made its product “Phantom” open source three months ago and just recently made “HostDB” open source.  Contributors to open source code do not receive payment their work, which greatly cuts down on costs.  Companies do not necessarily benefit from contributors’ work, but often small improvements can be implemented into their programs.  Allowing the public to create this new code reduces risk and cost to minimal values. 

Oligopoly and Mergers: American Airlines and US Airways Group

American Airlines and US Airways group have recently negotiated terms with the US Justice Department which allow the two entities to merge.  In order to follow through with the merger, American Airlines and US Airways the airlines have to forego a combined 104 flight slots at Ronald Reagan National Airport and 34 flight slots at LaGuardia Airport.  The airlines were further required to give up gate rights in O’Hare International, Los Angeles International, Boston Logan International, Dallas Love Field, and Miami International.