In a comment to my paper "The Economics of IPR Protection Policies," Martínez-Sánchez (2007) shows that in my model under certain conditions the presence of piracy increases the quantity produced by the legal monopolist firm. In this note, I show how the algebra used in Martínez-Sánchez (2007) may be misleading and clarify under what assumptions such a finding would emerge. Finally, I discuss the validity of the assumptions in my model that would yield such counterintuitive finding.
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Volume (Year): 6 (2007) Issue (Month): 4 (December) Pages: 530-534 Download reference. The following formats are available: HTML
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