Publication Type

Master Thesis

Version

publishedVersion

Publication Date

6-2026

Abstract

This paper studies how generative AI reshapes decentralized production by examining the release of ChatGPT as a shock to open-source software development. Using a panel of non-AI GitHub repositories and exploiting cross-language variation in ChatGPT’s early coding performance, I compare repositories written in languages more compatible with ChatGPT to those written in less compatible languages. I find that treated repositories experience a significant increase in contribution concentration after the shock. This increase is driven primarily by the exit of peripheral contributors, but also by a residual reallocation of work toward top contributors. The reallocation effect is concentrated in repositories without organizational affiliation, consistent with less formal governance structures allowing core contributors to absorb tasks more quickly. I then examine why peripheral participation declined. The evidence suggests two complementary channels. First, generative AI increased the creation of new high-quality repositories, especially among organizationally affiliated projects, suggesting that it lowered the cost of initiating new projects and reallocated effort across the open-source ecosystem. Second, peripheral contributors’ willingness to participate did not decline substantially; instead, their contributions became less likely to be incorporated into existing projects. Despite these changes, I find no evidence that generative AI increased output within existing projects; if anything, output declined, particularly among organizationally affiliated repositories. The findings suggest that generative AI expands the extensive margin of open-source production while contracting and concentrating production within existing projects.

Keywords

Generative AI, Organizational Structure, Open-source Environment, Software Development

Degree Awarded

Master of Philosophy in Econ

Discipline

Industrial Organization | Labor Economics

Supervisor(s)

XU, Jianhuan

First Page

1

Last Page

65

Publisher

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Author

Available for download on Monday, January 11, 2027

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