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File Sharing: Creative Destruction or Just Plain Destruction?

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Author Info
Liebowitz, Stan J

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Abstract

The sharing of sound recordings over the Internet is the newest controversy in a long-running battle between copyright owners and copying technologies. In order to provide some context, perspective, and background, this paper examines the short history of file sharing, the longer history of record sales, various explanations for the change in record sales, and some analysis of the economics of copying. Although file sharing has been imperfectly and inconsistently measured, it nevertheless appears to reveal a fairly close linkage between changes in file sharing and changes in record sales. Explanations, other than file sharing, for the recent decline in record sales seem to have little or no support. Because economic theories of the impacts of copying hold out little hope for a benign impact of file sharing, these results should not be surprising. These findings reinforce the econometric results from most of an expanding literature.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Law and Economics.

Volume (Year): 49 (2006)
Issue (Month): 1 (April)
Pages: 1-28
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Handle: RePEc:ucp:jlawec:y:2006:v:49:i:1:p:1-28

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  1. Herings, P. Jean-Jacques & Peeters, Ronald & Yang, Michael, 2008. "Competition against peer-to-peer networks," Research Memoranda 020, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization. [Downloadable!]
  2. Iacopo Grassi, 2007. "The Music Market in the Age of Download," Working Papers 2007.80, Fondazione Eni Enrico Mattei. [Downloadable!]
  3. Charles Hill, 2007. "Digital piracy: Causes, consequences, and strategic responses," Asia Pacific Journal of Management, Springer, vol. 24(1), pages 9-25, March. [Downloadable!] (restricted)
  4. Joel Waldfogel, 2007. ""Lost" on the Web: Does Web Distribution Stimulate or Depress Television Viewing?," NBER Working Papers 13497, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Rong-An Shang & Yu-Chen Chen & Pin-Cheng Chen, 2008. "Ethical Decisions About Sharing Music Files in the P2P Environment," Journal of Business Ethics, Springer, vol. 80(2), pages 349-365, June. [Downloadable!] (restricted)
  6. Eric Chiang & Djeto Assane, 2007. "Determinants of music copyright violations on the university campus," Journal of Cultural Economics, Springer, vol. 31(3), pages 187-204, September. [Downloadable!] (restricted)
  7. Juan Montoro Pons & Manuel Cuadrado García, 2008. "Legal origin and intellectual property rights: an empirical study in the prerecorded music sector," European Journal of Law and Economics, Springer, vol. 26(2), pages 153-173, October. [Downloadable!] (restricted)
  8. Herings P. Jean-Jacques & Peeters Ronald & Yang Michael S., 2009. "Piracy on the internet: Accommodate it or fight it? A dynamic approach," Research Memoranda 036, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization. [Downloadable!]
  9. David Waterman & Sung Ji & Laura Rochet, 2007. "Enforcement and Control of Piracy, Copying, and Sharing in the Movie Industry," Review of Industrial Organization, Springer, vol. 30(4), pages 255-289, June. [Downloadable!] (restricted)
  10. Norbert Michel, 2006. "The Impact of Digital File Sharing on the Music Industry: An Empirical Analysis," Topics in Economic Analysis & Policy, Berkeley Electronic Press, vol. 6(1), pages 1549-1549. [Downloadable!] (restricted)
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