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Network Externality and Commercial Software Piracy

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  • Sougata Poddar

    ()
    (Department of Economics, National University of Singapore)

Abstract

Contrary to the earlier findings under end-users piracy where the existence of strong network externality was shown to be a reason for allowing limited piracy, we find when the piracy is commercial in nature the optimal policy for the original software developer is to protect its product irrespective of the strength of network externality in the software users market.

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File URL: http://www.fas.nus.edu.sg/ecs/pub/wp/wp0516.pdf
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Bibliographic Info

Paper provided by National University of Singapore, Department of Economics in its series Departmental Working Papers with number wp0516.

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Length: 11 pages
Date of creation: Dec 2005
Date of revision:
Handle: RePEc:nus:nusewp:wp0516

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Web page: http://www.fas.nus.edu.sg/ecs/index.html
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Related research

Keywords: Copyright violations; Commercial/Retail piracy; Network externality; Quality;

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References

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  1. Takeyama, Lisa N, 1994. "The Welfare Implications of Unauthorized Reproduction of Intellectual Property in the Presence of Demand Network Externalities," Journal of Industrial Economics, Wiley Blackwell, vol. 42(2), pages 155-66, June.
  2. Oz Shy & Jacques-Françlois Thisse, 1999. "A Strategic Approach to Software Protection," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 8(2), pages 163-190, 06.
  3. Gayer, Amit & Shy, Oz, 2003. "Copyright protection and hardware taxation," Information Economics and Policy, Elsevier, vol. 15(4), pages 467-483, December.
  4. Banerjee, Dyuti S., 2003. "Software piracy: a strategic analysis and policy instruments," International Journal of Industrial Organization, Elsevier, vol. 21(1), pages 97-127, January.
  5. Kathleen Reavis Conner & Richard P. Rumelt, 1991. "Software Piracy: An Analysis of Protection Strategies," Management Science, INFORMS, vol. 37(2), pages 125-139, February.
  6. Joshua Slive & Dan Bernhardt, 1998. "Pirated for Profit," Canadian Journal of Economics, Canadian Economics Association, vol. 31(4), pages 886-899, November.
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Citations

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Cited by:
  1. Yuanzhu Lu & Sougata Poddar, 2012. "Does Reliable Pirated Product Lead to More Piracy?," Working Papers 2012-05, Auckland University of Technology, Department of Economics.
  2. Yuanzhu Lu & Sougata Poddar, 2009. "Accommodation or Deterrence in the Face of Commercial Piracy: the Impact of Intellectual Property Rights (IPR) Protection," CEMA Working Papers 389, China Economics and Management Academy, Central University of Finance and Economics.
  3. Peitz, Martin & Waelbroeck, Patrick, 2006. "Piracy of digital products: A critical review of the theoretical literature," Information Economics and Policy, Elsevier, vol. 18(4), pages 449-476, November.
  4. Francisco Martínez-Sánchez & Javier M. López Cuñat, 2011. "Anti-piracy policy and quality differential in markets for information goods," Working Papers. Serie AD 2011-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

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