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It is a theft but not a crime

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Author Info
Balestrino, Alessandro

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Abstract

Why do people who normally refrain from committing illegalities become digital pirates? In this paper we use a theoretical model of digital piracy combined with a game-theoretic mechanism of social norm formation to argue that no social stigma is attached to digital piracy because the latter has no perceived social cost; therefore, there is no pressure to build a norm condemning it. However, there also exists a "sophisticate" form of piracy focused on high-quality copies, and not on Internet downloads and black market purchases of low-quality copies like the most common form. Somewhat paradoxically, sophisticate piracy could help to generate a social attitude against piracy, because it is self-containing. However, it is limited in its scope, and it is difficult to predict whether it might ever become sufficiently widespread to effectively engender the formation of anti-piracy social norms.

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File URL: http://www.sciencedirect.com/science/article/B6V97-4R6B2CB-2/1/d61f5f53fd7b0496cace9ee416b508da
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Publisher Info
Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 24 (2008)
Issue (Month): 2 (June)
Pages: 455-469
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Handle: RePEc:eee:poleco:v:24:y:2008:i:2:p:455-469

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Web page: http://www.elsevier.com/locate/inca/505544

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  1. Paul Belleflamme & Pierre Picard, 2004. "Piracy and Competition," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  2. Alessandro Balestrino, . "Tax Avoidance, Endogenous Social Norms, and the Comparison Income Effect," EPRU Working Paper Series 05-15, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics, revised Dec 2005. [Downloadable!]
    Other versions:
  3. Josef Falkinger, 2004. "Noncooperative Support of Public Norm Enforcement in Large Societies," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  4. Myles, Gareth D. & Naylor, Robin A., 1996. "A model of tax evasion with group conformity and social customs," European Journal of Political Economy, Elsevier, vol. 12(1), pages 49-66, April. [Downloadable!] (restricted)
  5. Dufwenberg, Martin & Lundholm, Michael, 2001. "Social Norms and Moral Hazard," Economic Journal, Royal Economic Society, vol. 111(473), pages 506-25, July. [Downloadable!] (restricted)
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  6. Akerlof, George A, 1980. "A Theory of Social Custom, of Which Unemployment May be One Consequence," The Quarterly Journal of Economics, MIT Press, vol. 94(4), pages 749-75, June. [Downloadable!] (restricted)
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  7. Martin Peitz & Patrick Waelbroeck, 2003. "Piracy of Digital Products: A Critical Review of the Economics Literature," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  8. Banerjee, Dyuti S., 2003. "Software piracy: a strategic analysis and policy instruments," International Journal of Industrial Organization, Elsevier, vol. 21(1), pages 97-127, January. [Downloadable!] (restricted)
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