The Computer Generation's Willingness to Pay for Originals when Pirates are Present – A CV study
AbstractA contingent valuation method is applied to study subjects' willingness to pay for originals when illegal copies are freely available. The subjects consisted of 234 Swedish undergraduate students from the "computer generation". Only 2% of the "normal" (and 0% of the "elite") students were willing to pay the retail price for the original. However, the majority was prepared to pay a non-negligible amount for the original. Demand curves and profit maximizing behaviors are analyzed. The price elasticity of piracy indicates that piracy is insensitive to price cuts. The results have implications for the calculation of damages of piracy.
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Bibliographic InfoPaper provided by Lund University, Department of Economics in its series Working Papers with number 2000:9.
Length: 23 pages
Date of creation: 27 Sep 2000
Date of revision: 01 Nov 2000
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Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
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More information through EDIRC
Piracy; Contingent Valuation; Damages; Software;
Find related papers by JEL classification:
- D40 - Microeconomics - - Market Structure and Pricing - - - General
- K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
- Z10 - Other Special Topics - - Cultural Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-LAW-2000-11-14 (Law & Economics)
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