Copyright Protection And Innovation In The Presence Of Commercial Piracy
AbstractThis paper uses a strategic entry-deterrence approach to address the effects of anti-commercial piracy policies on a firmâ€™s incentive to innovate. Monitoring increases the firmâ€™s incentive to innovate. However, inclusion of innovation does not necessarily result in monitoring as the socially optimal policy. If monitoring is the socially optimal policy then the commercial pirateâ€™s entry may or may not be deterred. The entry-deterring limit price and quality is less than that in the monopoly case. Only in the extreme situation the monopoly results are restored.
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Bibliographic InfoPaper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number 05-07.
Length: 21 pages
Date of creation: 2007
Date of revision:
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Postal: Department of Economics, Monash University, Victoria 3800, Australia
Web page: http://www.buseco.monash.edu.au/eco/
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Find related papers by JEL classification:
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-08-08 (All new papers)
- NEP-COM-2009-08-08 (Industrial Competition)
- NEP-INO-2009-08-08 (Innovation)
- NEP-LAW-2009-08-08 (Law & Economics)
- NEP-TID-2009-08-08 (Technology & Industrial Dynamics)
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