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The Economics of IPR Protection Policies

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  • Gil Ricard

    ()
    (Department of Economics, UC Santa Cruz)

Abstract

In this paper, I model competition between legal and pirate products. In this framework, the government affects competition through police spending and taxes on the legal products. Therefore, the government can choose the optimal combination of spending and taxes that fit better its goals. I show that governments focusing on eradicating piracy will use lower level of taxes and police spending than governments focused on maximizing consumption, consumer surplus, and welfare or government size. This result highlights the importance of demand side policies in the fight against piracy and challenges the traditional solo approach of supply side policies.

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File URL: http://www.degruyter.com/view/j/rne.2006.5.3/rne.2006.5.3.1099/rne.2006.5.3.1099.xml?format=INT
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Bibliographic Info

Article provided by De Gruyter in its journal Review of Network Economics.

Volume (Year): 5 (2006)
Issue (Month): 3 (September)
Pages: 1-21

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Handle: RePEc:bpj:rneart:v:5:y:2006:i:3:n:1

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  1. Joshua Slive & Dan Bernhardt, 1998. "Pirated for Profit," Canadian Journal of Economics, Canadian Economics Association, vol. 31(4), pages 886-899, November.
  2. David Blackburn, 2002. "Complementarities and network externalities in casually copied goods," Estudios de Economia, University of Chile, Department of Economics, vol. 29(1 Year 20), pages 71-88, June.
  3. Paul Romer, 2002. "When Should We Use Intellectual Property Rights?," American Economic Review, American Economic Association, vol. 92(2), pages 213-216, May.
  4. William Landes & Douglas Lichtman, 2003. "Indirect Liability for Copyright Infringement: Napster and Beyond," Journal of Economic Perspectives, American Economic Association, vol. 17(2), pages 113-124, Spring.
  5. Wauthy, X., 1994. "Quality Choice in Models of Vertical Differentiation," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1994033, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  6. Takeyama, Lisa N, 1997. "The Intertemporal Consequences of Unauthorized Reproduction of Intellectual Property," Journal of Law and Economics, University of Chicago Press, vol. 40(2), pages 511-22, October.
  7. Dam, Kenneth W, 1999. "Self-Help in the Digital Jungle," The Journal of Legal Studies, University of Chicago Press, vol. 28(2), pages 393-412, June.
  8. Hal R. Varian, 2005. "Copying and Copyright," Journal of Economic Perspectives, American Economic Association, vol. 19(2), pages 121-138, Spring.
  9. Takeyama, Lisa N, 1994. "The Welfare Implications of Unauthorized Reproduction of Intellectual Property in the Presence of Demand Network Externalities," Journal of Industrial Economics, Wiley Blackwell, vol. 42(2), pages 155-66, June.
  10. Shaked, Avner & Sutton, John, 1982. "Relaxing Price Competition through Product Differentiation," Review of Economic Studies, Wiley Blackwell, vol. 49(1), pages 3-13, January.
  11. Rob, Rafael & Waldfogel, Joel, 2006. "Piracy on the High C's: Music Downloading, Sales Displacement, and Social Welfare in a Sample of College Students," Journal of Law and Economics, University of Chicago Press, vol. 49(1), pages 29-62, April.
  12. Stanley M. Besen & Leo J. Raskind, 1991. "An Introduction to the Law and Economics of Intellectual Property," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 3-27, Winter.
  13. Yeh-ning Chen & Ivan Png, 2004. "Parallel Imports and Music CD Prices," International Trade 0402001, EconWPA.
  14. Hui Kai-Lung & Png Ivan, 2003. "Piracy and the Legitimate Demand for Recorded Music," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 2(1), pages 1-24, September.
  15. Benjamin Klein & Andres V. Lerner & Kevin M. Murphy, 2002. "The Economics of Copyright "Fair Use" in a Networked World," American Economic Review, American Economic Association, vol. 92(2), pages 205-208, May.
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