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Lobbyin to prevent commercial piracy

Author

Listed:
  • Martínez-Sánchez, Francisco

    (Departamentos y Servicios::Departamentos de la UMU::Fundamentos del Análisis Económico)

Abstract

In this paper we develop a common agency model to analyze the problem of pirates entering the market, in which the incumbent and the consumers form pressure groups to lobby the government on policies to prevent piracy while the pirates try to avoid being stopped. We show that a monopoly is not an equilibrium when both the incumbent and consumers lobby the government, and that the cost of monitoring commercial piracy is very important in determining (truthful) equilibria, as is the case where there is no lobby competition. However, it is now more difficult getting the pirate to enter the market.

Suggested Citation

  • Martínez-Sánchez, Francisco, 2010. "Lobbyin to prevent commercial piracy," UMUFAE Economics Working Papers 13255, DIGITUM. Universidad de Murcia.
    • Handle: RePEc:mur:wpaper:13255
    as

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    References listed on IDEAS

    as
    1. Laussel Didier G, 2006. "Special Interest Politics and Endogenous Lobby Formation," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 6(1), pages 1-14, February.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Common Agency; Lobbying; Commercial Piracy; Incumbent; Consumers and Government;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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