Abstract

http://ssrn.com/abstract=2003106
 
 

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Digital Piracy, Teens, and the Source of Advice: An Experimental Study


Matthew J. Hashim


University of Arizona

Karthik Natarajan Kannan


Purdue University

Sandra Maximiano


University of Amsterdam - Amsterdam School of Economics (ASE)

Jackie Rees


Purdue University - Department of Management

May 31, 2013


Abstract:     
We conduct an experiment in the lab to determine the effect of varying the source of piracy advice on music consumer behavior. By using teenagers and parents in our subject pool, we increase the realism of the piracy context by sampling potential pirates and their parents. Our treatments represent various sources of piracy advice (e.g., the teen's parent, a record label, or an external regulator). Subjects make their decisions playing our new experimental game - The Piracy Game - which is extended from the volunteer's dilemma literature. Interestingly, subjects respond negatively to advice from record labels over time, purchasing fewer songs compared to when the advice is received from other sources such as the subject's parent. The existence of the social tie between the advisor and the subject assists in mitigating piracy, especially when the source of advice is a parent facing potential penalties due to his/her child's behavior. An external regulator, who has no social tie with the advisee and has no stake in the decision of the advisee, provides the least credible source of advice and leads to the greatest amount of piracy.

Number of Pages in PDF File: 37

Keywords: piracy, experimental economics, volunteer's dilemma, advice, communication

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Date posted: February 11, 2012 ; Last revised: June 2, 2013

Suggested Citation

Hashim, Matthew J. and Kannan, Karthik Natarajan and Maximiano, Sandra and Rees, Jackie, Digital Piracy, Teens, and the Source of Advice: An Experimental Study (May 31, 2013). Available at SSRN: http://ssrn.com/abstract=2003106 or http://dx.doi.org/10.2139/ssrn.2003106

Contact Information

Matthew J. Hashim (Contact Author)
University of Arizona ( email )
Department of Management Information Systems
Eller College of Management
Tucson, AZ 85721
United States
Karthik Natarajan Kannan
Purdue University ( email )
Krannert School of Management
West Lafayette, IN 47907
United States
Sandra Maximiano
University of Amsterdam - Amsterdam School of Economics (ASE) ( email )
Roetersstraat 11
Amsterdam, North Holland 1018 WB
Netherlands
Jackie Rees
Purdue University - Department of Management ( email )
West Lafayette, IN 47907-1310
United States
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