Mathematical modelling of co-opetition at the modern IT market

The paper is motivated by competition and cooperation of hardware (Intel, AMD), operating systems (Microsoft Windows and Linux), and software applications (Microsoft Office and OpenOffice).The objective of the paper is to show the conflicts in pricing and the frequency of new releases which is contrary to the general view of well aligned incentives of complementary network products. The mechanism of the conflict is investigated when Intel sets prices too high and supports Linux team, the major competitor of Microsoft, while Microsoft releases new versions too late and backs AMD, Intel´s main competitor. The investigation of hardware and software opposition provided in this paper is important for revealing the nature and mechanisms of competition at the knowledge markets. The model could be used as an instrument for decision-making at the IT market and as a basis for future research.