Software Economics
Strategy Letter V by Joel Spolsky
Best piece of economical analysis of software business. Though I feel the power of community and individuls' willingness to contribute is a little undermined in this analysis. For example, I think there is something in human nature to participate in community work voluntarily. We have many real world examples of such. Joel's own company Stack Exchange is "Free, Community-Powered Q&A" -- to quote their own title.