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Please do not pirate it, you will rob the poor! An experimental investigation on the effect of charitable donations on piracy

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  • Grolleau, Gilles
  • Mzoughi, Naoufel
  • Sutan, Angela

Abstract

Producers in the recording industry frequently market products for which a part of the proceeds goes to charitable causes. We investigate whether a corporate pledge to donate a portion of profits to a charitable cause will decrease the extent to which customers illegally obtain that company's products. Donations to charitable causes may increase the moral intensity of piracy (robbing the poor rather than robbing the rich) and consequently may reduce the willingness to pirate. This rationale is empirically tested through a dual empirical strategy, that is, a market survey and a laboratory experiment. We show that market piracy decreases when a very low or very high donation mechanism is implemented. Nevertheless, for intermediate levels of transfer, piracy increases again.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:soceco:v:37:y:2008:i:6:p:2417-2426
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    References listed on IDEAS

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    1. Stan Liebowitz, 2005. "Economists’ Topsy-Turvy View of Piracy," Law and Economics 0505002, University Library of Munich, Germany.
    2. Hui Kai-Lung & Png Ivan, 2003. "Piracy and the Legitimate Demand for Recorded Music," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 2(1), pages 1-24, September.
    3. Strahilevitz, Michal & Myers, John G, 1998. "Donations to Charity as Purchase Incentives: How Well They Work May Depend on What You Are Trying to Sell," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(4), pages 434-446, March.
    4. Webb, Natalie J., 1996. "Corporate profits and social responsibility: "Subsidization" of corporate income under charitable giving tax laws," Journal of Economics and Business, Elsevier, vol. 48(4), pages 401-421, October.
    5. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
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    Cited by:

    1. Piotr Ćwiakowski & Marek Giergiczny & Michał Krawczyk, 2013. "Pirates in the lab. Using incentivized choice experiments to explore preference for (un)authorized content," Working Papers 2013-25, Faculty of Economic Sciences, University of Warsaw.
    2. Mills, Paul & Groening, Christopher, 2021. "The role of social acceptability and guilt in unethical consumer behavior: Following the crowd or their own moral compass?," Journal of Business Research, Elsevier, vol. 136(C), pages 377-388.
    3. Dib-Slamani, Hind & Grolleau, Gilles & Mzoughi, Naoufel, 2022. "Robbing a robber is not robbing," The Quarterly Review of Economics and Finance, Elsevier, vol. 85(C), pages 1-7.
    4. Steven James Watson & Daniel John Zizzo & Piers Fleming, 2015. "Determinants of Unlawful File Sharing: A Scoping Review," PLOS ONE, Public Library of Science, vol. 10(6), pages 1-23, June.

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