Abstract

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Digital Piracy: Theory


Paul Belleflamme


CORE and Louvain School of Management, UCL (Université Catholique de Louvain); CESifo (Center for Economic Studies and Ifo Institute)

Martin Peitz


University of Mannheim - Department of Economics

October 27, 2010

CESifo Working Paper Series No. 3222

Abstract:     
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

working papers series


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Date posted: October 28, 2010  

Suggested Citation

Belleflamme, Paul and Peitz, Martin, Digital Piracy: Theory (October 27, 2010). CESifo Working Paper Series No. 3222. Available at SSRN: http://ssrn.com/abstract=1698618

Contact Information

Paul Belleflamme (Contact Author)
CORE and Louvain School of Management, UCL (Université Catholique de Louvain) ( email )
34 Voie du Roman Pays
B-1348 Louvain-la-Neuve, B-1348
Belgium
+32 10 47 82 91 (Phone)
+32 10 47 43 01 (Fax)
HOME PAGE: http://perso.uclouvain.be/paul.belleflamme/Site/Home.html
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
Martin Peitz
University of Mannheim - Department of Economics ( email )
D-68131 Mannheim
Germany
+49 621 181-1835 (Phone)
HOME PAGE: http://peitz.vwl.uni-mannheim.de/
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