40 Pages Posted: 28 Oct 2010
Date Written: October 27, 2010
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.
Keywords: information good, piracy, copyright, IP protection, internet, peer-to-peer, software, music
JEL Classification: L11, L82, L86
Suggested Citation: Suggested Citation
Belleflamme, Paul and Peitz, Martin, Digital Piracy: Theory (October 27, 2010). CESifo Working Paper Series No. 3222. Available at SSRN: https://ssrn.com/abstract=1698618
By Urs Gasser