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Consumer switching costs in a market with legal and pirate providers

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  • Wojciech Hardy

Abstract

Despite a rich literature on switching costs in traditional markets, little has been said on the context of competition between pirate and legal providers. With a sizeable literature on the effects of piracy and its determinants, it is crucial to understand the specific barriers that may prevent consumers from diverting to unauthorised consumption in the first place. Basing on existing switching cost typologies, literature on piracy and new empirical evidence, I provide a first thorough categorisation of different switching costs in a market with legal and pirate providers. I discuss the implications for consumer retention strategies.

Suggested Citation

  • Wojciech Hardy, 2020. "Consumer switching costs in a market with legal and pirate providers," IBS Working Papers 08/2020, Instytut Badan Strukturalnych.
    • Handle: RePEc:ibt:wpaper:wp082020
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    References listed on IDEAS

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    Cited by:

    1. Rożynek, Satia & Hardy, Wojciech, 2023. "Incentivising ‘pirates’ to pay – An experiment with comic book readers," Information Economics and Policy, Elsevier, vol. 64(C).

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    More about this item

    Keywords

    switching costs; piracy; competition; digital goods; file-sharing;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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