We provide a theoretical result on the effect of piracy on the sales of legal product using the same framework as Gil (2006). We obtain that when the illegal sector is perfectly competitive and the marginal cost of the legal firm and the quantity tax are small enough, piracy does not lead to lower sales of the legal product.
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Volume (Year): 6 (2007) Issue (Month): 4 (December) Pages: 525-529 Download reference. The following formats are available: HTML
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Martin Peitz & Patrick Waelbroeck, 2004.
"An Economist's Guide to Digital Music,"
Discussion Papers
32, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
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