Abstract

http://ssrn.com/abstract=2380522
 


 



Graduated Response Policy and the Behavior of Digital Pirates: Evidence from the French Three-Strike (Hadopi) Law


Michael A. Arnold


University of Delaware - Alfred Lerner College of Business and Economics

Eric Darmon


Université de Rennes I - Center for Research in Economics and Management (CREM)

Sylvain Dejean


LR-MOS, University of La Rochelle; Université de Rennes I - Center for Research in Economics and Management (CREM)

Thierry Pénard


Université de Rennes I - Faculte de Sciences Economiques; Université de Rennes I - Center for Research in Economics and Management (CREM); Armorican Mole for Research on the Information Society and Uses of the Internet

May 28, 2014


Abstract:     
Most developed countries have tried to restrain digital piracy by strengthening laws against copyright infringement. In 2009, France implemented the Hadopi law. Under this law individuals receive a warning the first two times they are detected illegally sharing content through peer to peer (P2P) networks. Legal action is only taken when a third violation is detected. We analyze the impact of this law on individual behavior. Our theoretical model of illegal behavior under a graduated response law predicts that the perceived probability of detection has no impact on the decision to initially engage in digital piracy, but may reduce the intensity of illegal file sharing by those who do pirate. We test the theory using survey data from French Internet users. Our econometric results indicate that the law has no substantial deterrent effect. In addition, we find evidence that individuals who are better informed about the law and piracy alternatives substitute away from monitored P2P networks and illegally access content through unmonitored channels.

Number of Pages in PDF File: 39

Keywords: Digital Piracy, File sharing, Antipiracy law, Graduated response, Peer effects

JEL Classification: K42, L82, O34

working papers series





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Date posted: January 20, 2014 ; Last revised: June 4, 2014

Suggested Citation

Arnold, Michael A. and Darmon, Eric and Dejean, Sylvain and Pénard, Thierry, Graduated Response Policy and the Behavior of Digital Pirates: Evidence from the French Three-Strike (Hadopi) Law (May 28, 2014). Available at SSRN: http://ssrn.com/abstract=2380522 or http://dx.doi.org/10.2139/ssrn.2380522

Contact Information

Michael A. Arnold
University of Delaware - Alfred Lerner College of Business and Economics ( email )
Purnell Hall
Newark, DE 19716
United States
(302) 831-1916 (Phone)
(302) 831-6968 (Fax)
Eric Darmon
Université de Rennes I - Center for Research in Economics and Management (CREM) ( email )
7 place Hoche
Rennes, Bretagne 35000
France
Sylvain Dejean
LR-MOS, University of La Rochelle ( email )
La Rochelle, F-17042
France
Université de Rennes I - Center for Research in Economics and Management (CREM) ( email )
7 place Hoche
Rennes, Bretagne 35000
France
Thierry Pénard (Contact Author)
Université de Rennes I - Faculte de Sciences Economiques ( email )
7, Place Hoche
35000 Rennes
France
Université de Rennes I - Center for Research in Economics and Management (CREM) ( email )
7 place Hoche
Rennes, Bretagne 35000
France
Armorican Mole for Research on the Information Society and Uses of the Internet ( email )
France

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