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A note on a counterfeiting model with fines pocketed by the genuine firm

Author

Listed:
  • Andrea Di Liddo

Abstract

A monopolist sells a luxury genuine product protected by conventional intellectual property rights laws (IPR). However, a competitive fringe of counterfeiters can illegally copy and sell the product without the permission of the monopolist. Fines are imposed on counterfeiters and pocketed by the genuine firm. It is shown that when the genuine producer can shape the amount of sanctions, he will not necessarily seek to eliminate all counterfeiters.

Suggested Citation

  • Andrea Di Liddo, 2015. "A note on a counterfeiting model with fines pocketed by the genuine firm," Working Papers - Dipartimento di Economia - Università degli Studi di Foggia 01-2015, Dipartimento Economia, Universita' di Foggia.
    • Handle: RePEc:ufg:quecon:01-2015
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    File URL: http://www.economia.unifg.it/sites/sd01/files/allegatiparagrafo/08-05-2017/wp022015.pdf
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    More about this item

    Keywords

    Counterfeiting; Fines; Intellectual property rights;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly

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