This work highlights the delicate balance between collaboration and risk in the digital supply chain of software. We hope it contributes to the ongoing conversation about building resilient software ecosystems.

Thanks to my co-authors—Cornelius Fritz, Co-Pierre Georg, and Michael Schweinberger.

- Policy Insights: Interventions targeting systemic risk require nuanced strategies; simplistic centrality-based approaches are less effective.

This work highlights the delicate balance between collaboration and risk in the digital supply chain of software.

Key takeaways:
- Negative Externalities: Each dependency added can ripple through the network, increasing risks for other developers.
- AI-Assisted Coding: A promising avenue for reducing systemic risk by encouraging in-house coding over external dependencies.

In this paper, we explore the intricate web of software dependencies—a foundational aspect of modern software development that both accelerates innovation and amplifies systemic risk. Using a strategic network formation model, we analyze 52,897 directed dependencies among 16,102 Python repositories.