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Pirates in the lab. Using incentivized choice experiments to explore preference for (un)authorized content

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Author Info

  • Piotr Ćwiakowski

    ()
    (Faculty of Economic Sciences, University of Warsaw)

  • Marek Giergiczny

    ()
    (Faculty of Economic Sciences, University of Warsaw)

  • Michał Krawczyk

    ()
    (Faculty of Economic Sciences, University of Warsaw)

Abstract

We report a laboratory experiment aimed at investigating factors affecting choice between different versions of a full-length movie. In particular, we estimate the willingness to pay for a legal, rather than pirated copy and compare it to the impact of such characteristics as picture quality or delay in delivery. We find a modest but highly significant preference for the authorized version. By conducting otherwise identical choice experiments both with and without actual experiential and monetary consequences, we conclude that the method does not seem to suffer from hypothetical bias. We also find that when the proceeds from legal sale are transferred to a good cause, willingness to pay for the unauthorized copy is reduced.

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File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP110.pdf
File Function: First version, 2013
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Bibliographic Info

Paper provided by Faculty of Economic Sciences, University of Warsaw in its series Working Papers with number 2013-25.

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Length: 24 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:war:wpaper:2013-25

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Keywords: digital piracy; choice experiments;

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References

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  1. Meijer, E. & Rouwendal, J., 2000. "Measuring welfare effects in models with random coefficients," Research Report 00F25, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  2. Scarpa, Riccardo & Ruto, Eric S. K. & Kristjanson, Patti & Radeny, Maren & Drucker, Adam G. & Rege, John E. O., 2003. "Valuing indigenous cattle breeds in Kenya: an empirical comparison of stated and revealed preference value estimates," Ecological Economics, Elsevier, vol. 45(3), pages 409-426, July.
  3. Johansson-Stenman, Olof & Svedsäter, Henrik, 2012. "Self-image and valuation of moral goods: Stated versus actual willingness to pay," Journal of Economic Behavior & Organization, Elsevier, vol. 84(3), pages 879-891.
  4. Grolleau, Gilles & Mzoughi, Naoufel & Sutan, Angela, 2008. "Please do not pirate it, you will rob the poor! An experimental investigation on the effect of charitable donations on piracy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2417-2426, December.
  5. Krawczyk, Michał, 2012. "Testing for hypothetical bias in willingness to support a reforestation program," Journal of Forest Economics, Elsevier, vol. 18(4), pages 282-289.
  6. Giergiczny, Marek & Valasiuk, Sviataslau & Czajkowski, Mikolaj & De Salvo, Maria & Signorello, Giovanni, 2012. "Including cost income ratio into utility function as a way of dealing with ‘exploding’ implicit prices in mixed logit models," Journal of Forest Economics, Elsevier, vol. 18(4), pages 370-380.
  7. Tim Goles & Bandula Jayatilaka & Beena George & Linda Parsons & Valrie Chambers & David Taylor & Rebecca Brune, 2008. "Softlifting: Exploring Determinants of Attitude," Journal of Business Ethics, Springer, vol. 77(4), pages 481-499, February.
  8. James Murphy & P. Allen & Thomas Stevens & Darryl Weatherhead, 2005. "A Meta-analysis of Hypothetical Bias in Stated Preference Valuation," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 30(3), pages 313-325, 03.
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