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Digital Technology, Price Discrimination, and Copyright Duration Extension

17 Pages Posted: 10 Jan 2011  

Michael Y. Yuan

Roger Williams University - Gabelli School of Business

Date Written: January 9, 2011

Abstract

Many countries have yet to decide whether extend copyright duration. Technological changes were cited by a U.S. Senate report to support duration extension. This study adds to the assessment of the validity of the technological argument by simulating the effect on optimal copyright duration of increased price discrimination caused by digital technology. Simulation of a model of information product market indicates that increase of price discrimination on high-end market calls for shorter copyright duration; that on low-end market may support extension, if the discrimination benefits consumers, and otherwise work against it. It further suggests price discrimination on low-end market increases welfare and supply of original information products but that on the high-end market may either increase or decrease them.

Suggested Citation

Yuan, Michael Y., Digital Technology, Price Discrimination, and Copyright Duration Extension (January 9, 2011). Review of Economic Research on Copyright Issues, Vol. 7, No. 2, pp. 39-55, 2010. Available at SSRN: https://ssrn.com/abstract=1737450

Michael Y. Yuan (Contact Author)

Roger Williams University - Gabelli School of Business ( email )

Bristol, RI 02809
United States

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