Abstract

http://ssrn.com/abstract=1759857
 
 

References (75)



 
 

Citations (2)



 


 



Counterfeiters: Foes or Friends? How Do Counterfeits Affect Different Product Quality Tiers?


Yi Qian


Northwestern University - Kellogg School of Management

February 2011

NBER Working Paper No. w16785

Abstract:     
A key concern about counterfeits and weak intellectual property protection is that they may hamper innovation by displacing legitimate sales. This paper combines a natural policy experiment with randomized lab experiments to estimate the heterogeneous impacts of counterfeiting on the sales and consumer purchase intent related to branded products of various quality levels. I collect new product-line-level panel data (1993-2004) on Chinese shoe companies. I identify heterogeneous effects of counterfeit entry on sales of authentic products of three quality tiers, finding that counterfeits have both advertising effects for a brand and substitution effects for authentic products, additionally the effects linger for some years. The advertising effect dominates the substitution effect for high-end authentic-product sales, and the substitution effect outweighs the advertising effect for low-end product sales. The positive effect of counterfeits is most pronounced for high-fashion products (such as women’s high-leg boots and dress shoes), for shoes tailored to young customers, and for high-end products of brands not yet well-known at the time of counterfeiter entry.

Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Number of Pages in PDF File: 39

working papers series


Download This Paper

Date posted: February 14, 2011  

Suggested Citation

Qian, Yi, Counterfeiters: Foes or Friends? How Do Counterfeits Affect Different Product Quality Tiers? (February 2011). NBER Working Paper No. w16785. Available at SSRN: http://ssrn.com/abstract=1759857

Contact Information

Yi Qian (Contact Author)
Northwestern University - Kellogg School of Management ( email )
2001 Sheridan Road
Evanston, IL 60208
United States
Feedback to SSRN


Paper statistics
Abstract Views: 612
Downloads: 37
References:  75
Citations:  2

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.438 seconds