The cathedral vs. the bazaar refers to a way of operating an open source project, not open source vs. closed source [0]. Raymond uses the example of Emacs vs. Linux (Stallman vs. Torvalds) where Stallman works in private, only allows a privileged few to contribute vs. Torvalds who accepts changes liberally.

[0] https://en.wikipedia.org/wiki/The_Cathedral_and_the_Bazaar