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Piracy on the Silver Screen

17 Pages Posted: 14 Sep 2007  

Rafael Rob

University of Pennsylvania - Department of Economics

Joel Waldfogel

University of Minnesota - Twin Cities - Carlson School of Management; National Bureau of Economic Research (NBER); University of Minnesota - Twin Cities - Department of Economics

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Abstract

Using survey data on movie consumption by about 500 University of Pennsylvania undergraduate students, we ask whether unpaid consumption of movies displaces paid consumption. A variety of cross-sectional and longitudinal empirical approaches show large and statistically significant evidence of displacement. In the most appropriate empirical specification, we find that unpaid first consumption reduces paid consumption by about 1 unit. Unpaid second consumption has a smaller effect, about 0.20 units. Our analysis indicates that unpaid consumption, which makes up 5.2 per cent of movie viewing in our sample, reduced paid consumption in our sample by 3.5 per cent.

Suggested Citation

Rob, Rafael and Waldfogel, Joel, Piracy on the Silver Screen. Journal of Industrial Economics, Vol. 55, No. 3, pp. 379-395, September 2007. Available at SSRN: https://ssrn.com/abstract=1013730 or http://dx.doi.org/10.1111/j.1467-6451.2007.00316.x

Rafael Rob (Contact Author)

University of Pennsylvania - Department of Economics ( email )

160 McNeil Building
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Philadelphia, PA 19104
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215-573-2057 (Fax)

Joel Waldfogel

University of Minnesota - Twin Cities - Carlson School of Management ( email )

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Minneapolis, MN 55455
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

University of Minnesota - Twin Cities - Department of Economics ( email )

271 19th Avenue South
Minneapolis, MN 55455
United States

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