Costly Reporting, Ex-post Monitoring, and Commercial Piracy: A Game Theoretic Analysis
AbstractThis paper examines the regulatory authority’s decision, following a report from the legal firm, on monitoring commercial piracy in a market characterised by asymmetric product differentiation. I show that with ex-post monitoring the government will monitor piracy under both price and quantity competition if the legal firm’s political influence is sufficiently high. The study also finds that there exists a unique level of the relative cross-price impact of the pirate’s price on the legal firm’s output, above which monitoring will be higher under quantity competition, and below which monitoring will be higher under price competition. Moreover, I show that when the government can credibly commit to monitor piracy the legal firm’s investment on innovation is higher under quantity competition than under price competition.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The University of Western Australia, Department of Economics in its series Economics Discussion / Working Papers with number 12-21.
Length: 39 pages
Date of creation: 2012
Date of revision:
Contact details of provider:
Postal: 35 Stirling Highway, Crawley, W.A. 6009
Phone: (08) 9380 2918
Fax: (08) 9380 1016
Web page: http://www.business.uwa.edu.au/school/disciplines/economics
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-20 (All new papers)
- NEP-BEC-2012-10-20 (Business Economics)
- NEP-COM-2012-10-20 (Industrial Competition)
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shane Standley).
If references are entirely missing, you can add them using this form.