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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.

Suggested Citation

  • Gil Ricard, 2006. "The Economics of IPR Protection Policies," Review of Network Economics, De Gruyter, vol. 5(3), pages 1-21, September.
    • Handle: RePEc:bpj:rneart:v:5:y:2006:i:3:n:1
    DOI: 10.2202/1446-9022.1099
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    Cited by:

    1. Martínez-Sánchez, Francisco, 2010. "Lobbyin to prevent commercial piracy," UMUFAE Economics Working Papers 13255, DIGITUM. Universidad de Murcia.
    2. Markus Pasche, 2014. "Welfare Effects of Endogenous Copyright Enforcement - the Case of Digital Goods," Jena Economics Research Papers 2014-008, Friedrich-Schiller-University Jena.

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