Digital Piracy: Theory
CORE and Louvain School of Management, UCL (Université Catholique de Louvain); CESifo (Center for Economic Studies and Ifo Institute)
University of Mannheim - Department of Economics
October 27, 2010
CESifo Working Paper Series No. 3222
This article reviews recent theoretical contributions on digital piracy. It starts by elaborating on the reasons for intellectual property protection, by reporting a few facts about copyright protection, and by examining reasons to become a digital pirate. Next, it provides an exploration of the consequences of digital piracy, using a base model and several extensions (with consumer sampling, network effects, and indirect appropriation). A closer look at market-structure implications of end-user piracy is then taken. After a brief review of commercial piracy, additional legal and private responses to end-user piracy are considered. Finally, a quick look at emerging new business models is taken.
Number of Pages in PDF File: 40
Keywords: information good, piracy, copyright, IP protection, internet, peer-to-peer, software, music
JEL Classification: L11, L82, L86
Date posted: October 28, 2010
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