IDEAS home Printed from https://ideas.repec.org/a/rnp/ecopol/ep1464.html
   My bibliography  Save this article

The impact of digital piracy on market strategies in software
[Влияние Цифрового Пиратства На Рыночные Стратегии В Сфере Программного Обеспечения]

Author

Listed:
  • Komarova, Anastasiya (Комарова, Анастасия)

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Lomonosov Moscow State University)

  • Kurdin, Alexander (Курдин, Александр)

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Lomonosov Moscow State University)

Abstract

Availability of digital piracy in software markets significantly affected the incentives and constraints of economic agents. This affects the results of market interaction, leading to a shift in the market equilibrium and social optimum. The developed model explains the author's choice of strategy for the dissemination of digital or analog version, namely the choice of the level of technical protection of copyright and pricing policy. It also allows to evaluate the effects on social well-being of the presence of digital piracy and the availability of protection from a copyright in the selection of different strategies.

Suggested Citation

  • Komarova, Anastasiya (Комарова, Анастасия) & Kurdin, Alexander (Курдин, Александр), 2014. "The impact of digital piracy on market strategies in software [Влияние Цифрового Пиратства На Рыночные Стратегии В Сфере Программного Обеспечения]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 54-75, December.
  • Handle: RePEc:rnp:ecopol:ep1464
    as

    Download full text from publisher

    File URL: https://repec.ranepa.ru/rnp/ecopol/ep1464.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sanjay Jain, 2008. "Digital Piracy: A Competitive Analysis," Marketing Science, INFORMS, vol. 27(4), pages 610-626, 07-08.
    2. Paul Belleflamme & Pierre M. Picard, 2007. "Piracy and Competition," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(2), pages 351-383, June.
    3. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
    4. A. Shastitko & A. Kurdin., 2012. "Antitrust Policy and Intellectual Property Rights Protection in Emerging Markets," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 1.
    5. Wendy J. Gordon & Richard Watt (ed.), 2003. "The Economics of Copyright," Books, Edward Elgar Publishing, number 2998.
    6. Yoon, Kiho, 2002. "The optimal level of copyright protection," Information Economics and Policy, Elsevier, vol. 14(3), pages 327-348, September.
    7. Liebowitz, S J, 1985. "Copying and Indirect Appropriability: Photocopying of Journals," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 945-957, October.
    8. Grossman, Gene M & Shapiro, Carl, 1988. "Counterfeit-Product Trade," American Economic Review, American Economic Association, vol. 78(1), pages 59-75, March.
    9. 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 511-522, October.
    10. Johnson, William R, 1985. "The Economics of Copying," Journal of Political Economy, University of Chicago Press, vol. 93(1), pages 158-174, February.
    11. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    12. Novos, Ian E & Waldman, Michael, 1984. "The Effects of Increased Copyright Protection: An Analytic Approach," Journal of Political Economy, University of Chicago Press, vol. 92(2), pages 236-246, April.
    13. Oz Shy & Jacques‐Françlois Thisse, 1999. "A Strategic Approach to Software Protection," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 8(2), pages 163-190, June.
    14. Coase, Ronald H, 1972. "Durability and Monopoly," Journal of Law and Economics, University of Chicago Press, vol. 15(1), pages 143-149, April.
    15. Minniti, Antonio & Vergari, Cecilia, 2010. "Turning Piracy into Profits: a Theoretical Investigation," Information Economics and Policy, Elsevier, vol. 22(4), pages 379-390, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peitz, Martin & Waelbroeck, Patrick, 2006. "Piracy of digital products: A critical review of the theoretical literature," Information Economics and Policy, Elsevier, vol. 18(4), pages 449-476, November.
    2. Martin Peitz & Patrick Waelbroeck, 2003. "Piracy of Digital Products: A Critical Review of the Economics Literature," CESifo Working Paper Series 1071, CESifo.
    3. Julie Holland Mortimer, 2007. "Price Discrimination, Copyright Law, and Technological Innovation: Evidence from the Introduction of DVDs," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(3), pages 1307-1350.
    4. Jen-Te Yao, 2005. "Counterfeiting and an Optimal Monitoring Policy," European Journal of Law and Economics, Springer, vol. 19(1), pages 95-114, January.
    5. Paul Belleflamme & Pierre M. Picard, 2007. "Piracy and Competition," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(2), pages 351-383, June.
    6. Stan J. Liebowitz & Richard Watt, 2006. "How To Best Ensure Remuneration For Creators In The Market For Music? Copyright And Its Alternatives," Journal of Economic Surveys, Wiley Blackwell, vol. 20(4), pages 513-545, September.
    7. Baojun Jiang & Lin Tian, 2018. "Collaborative Consumption: Strategic and Economic Implications of Product Sharing," Management Science, INFORMS, vol. 64(3), pages 1171-1188, March.
    8. Shin-yi Wu & Pei-yu Chen, 2008. "Versioning and Piracy Control for Digital Information Goods," Operations Research, INFORMS, vol. 56(1), pages 157-172, February.
    9. Tsai, Ming-Fang & Chiou, Jiunn-Rong & Lin, Chun-Hung A., 2012. "A model of counterfeiting: A duopoly approach," Japan and the World Economy, Elsevier, vol. 24(4), pages 283-291.
    10. Kinokuni, Hiroshi, 2003. "Copy-protection policies and profitability," Information Economics and Policy, Elsevier, vol. 15(4), pages 521-536, December.
    11. Tunay I. Tunca & Qiong Wu, 2013. "Fighting Fire with Fire: Commercial Piracy and the Role of File Sharing on Copyright Protection Policy for Digital Goods," Information Systems Research, INFORMS, vol. 24(2), pages 436-453, June.
    12. Terrence August & Tunay I. Tunca, 2008. "Let the Pirates Patch? An Economic Analysis of Software Security Patch Restrictions," Information Systems Research, INFORMS, vol. 19(1), pages 48-70, March.
    13. Cho, Won-Young & Ahn, Byong-Hun, 2010. "Versioning of information goods under the threat of piracy," Information Economics and Policy, Elsevier, vol. 22(4), pages 332-340, December.
    14. Yao, Jen-Te, 2015. "The impact of counterfeit-purchase penalties on anti-counterfeiting under deceptive counterfeiting," Journal of Economics and Business, Elsevier, vol. 80(C), pages 51-61.
    15. Rick Harbaugh & Rahul Khemka, 2010. "Does Copyright Enforcement Encourage Piracy?," Journal of Industrial Economics, Wiley Blackwell, vol. 58(2), pages 306-323, June.
    16. Alan E. Woodfield, 2006. "Piracy Accommodation and the Optimal Timing of Royalty Payments," Working Papers in Economics 06/01, University of Canterbury, Department of Economics and Finance.
    17. Shastitko, Andrey E. (Шаститко, Андрей) & Morosanova, Anastasia A. (Моросанова, Анастасия) & Meleshkina, Anna I. (Мелешкина, Анна), 2017. "The Security Level of the Results of Intellectual Activity and Piracy: Mathematical Modeling of the Impact on Public Wealth [Уровень Защиты Рид И Пиратство: Математическое Моделирование Влияния На ," Working Papers 021704, Russian Presidential Academy of National Economy and Public Administration.
    18. Choi, Pilsik & Bae, Sang Hoo & Jun, Jongbyung, 2010. "Digital piracy and firms' strategic interactions: The effects of public copy protection and DRM similarity," Information Economics and Policy, Elsevier, vol. 22(4), pages 354-364, December.
    19. Kinokuni, Hiroshi, 2005. "Compensation for copying and bargaining," Information Economics and Policy, Elsevier, vol. 17(3), pages 349-364, July.
    20. Piolatto, Amedeo & Schuett, Florian, 2012. "Music piracy: A case of “The Rich Get Richer and the Poor Get Poorer”," Information Economics and Policy, Elsevier, vol. 24(1), pages 30-39.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnp:ecopol:ep1464. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: RANEPA maintainer (email available below). General contact details of provider: https://edirc.repec.org/data/aneeeru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.