Lawrance G. Lux and the Open Source market model

My Web unsearch, find an economist posting about something relevant to an area I am familiar, make the connection and let the search engines roar.

LGL talks about marketing and funding a value added by a new firm:

What I would do is create the business, find the participating business, and sell Percentage (1) shares over the Internet for an auctioned price with the participating business capable of acceptance or rejection of the bid. Here is a Means of participating in small business growth without the ridiculous resort to Stocks, Bonds, and Commissions; I would demand a singular Commission price from both participating business and purchaser of $100 per realized Sale.

That's my kind of talk.

What about Open Source software?
In this case, I say, participating resellers of the software pay a small fee for maintenance, and that fee, aggregated, is used to bid out development by qualified software developers. However, we may break the funds into various modules of marketable software, allowing flexible software packages to meet market needs from a single base. Development funds may have time and size quants small enough to allow temporary business relationships among hardware firms.

Like Android, certainly creating a special build for very low cost toys, something the might branch of the Android tree. But it is likely funded by toy makers, robotic toys; a separable class of hardware vendors. We take the open software to a point where hardware vendors can target special niche needs with extensions to an ongoing software enterprise.