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Estimating The Willingness To Pay For Digital Music

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  • ERIC P. CHIANG
  • DJETO ASSANE

Abstract

The general consensus among the copyright piracy literature is that economic incentives and enforcement are both effective strategies that complement one another in reducing the occurrence of piracy. Yet, the key factor underlying these strategies is the ability of the media industries to influence an individual’s willingness to pay (WTP) for legal purchases when illegal versions exist. This article estimates the effects of factors influencing WTP for digital music downloads. Our results show that while income and risk perceptions play a dominant role in determining WTP, ethics are also important in influencing WTP. Our results are consistent with the growing consumer acceptance of fee‐based music services that can exist alongside peer‐to‐peer file sharing as well as serve as a viable substitute. (JEL O34, K42, D12)

Suggested Citation

  • Eric P. Chiang & Djeto Assane, 2009. "Estimating The Willingness To Pay For Digital Music," Contemporary Economic Policy, Western Economic Association International, vol. 27(4), pages 512-522, October.
    • Handle: RePEc:bla:coecpo:v:27:y:2009:i:4:p:512-522
    DOI: 10.1111/j.1465-7287.2009.00152.x
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    Cited by:

    1. Xiao-Ling Jin & Zhongyun Zhou & Yiwei Tian, 2022. "A Configurational Analysis of the Causes of Consumer Indirect Misbehaviors in Access-Based Consumption," Journal of Business Ethics, Springer, vol. 175(1), pages 135-166, January.
    2. Bert Weijters & Frank Goedertier & Sofie Verstreken, 2014. "Online Music Consumption in Today’s Technological Context: Putting the Influence of Ethics in Perspective," Journal of Business Ethics, Springer, vol. 124(4), pages 537-550, November.
    3. Luis Aguiar & Jörg Claussen & Christian Peukert, 2018. "Catch Me If You Can: Effectiveness and Consequences of Online Copyright Enforcement," Information Systems Research, INFORMS, vol. 29(3), pages 656-678, September.
    4. Dilmperi, Athina & King, Tamira & Dennis, Charles, 2011. "Pirates of the web: The curse of illegal downloading," Journal of Retailing and Consumer Services, Elsevier, vol. 18(2), pages 132-140.
    5. Mandel Philipp & Süssmuth Bernd, 2012. "Determinants of Digital Piracy: A Re-examination of Results," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(4), pages 394-413, August.
    6. Sylvain Dejean & Thierry Pénard & Raphaël Suire, 2010. "La gratuité est-elle une fatalité sur les marchés numériques ? Une étude sur le consentement à payer pour des offres de contenus audiovisuels sur internet," Economie & Prévision, La Documentation Française, vol. 0(3), pages 15-32.
    7. Mixon Jr., Franklin G. & Asarta, Carlos J. & Caudill, Steven B., 2017. "Patreonomics: Public goods pedagogy for economics principles," International Review of Economics Education, Elsevier, vol. 25(C), pages 1-7.
    8. Connie Bateman & Sean Valentine & Terri Rittenburg, 2013. "Ethical Decision Making in a Peer-to-Peer File Sharing Situation: The Role of Moral Absolutes and Social Consensus," Journal of Business Ethics, Springer, vol. 115(2), pages 229-240, June.
    9. David M. Mitchell & C. Patrick Scott & Keneth H. Brown, 2018. "Did the RIAA’s Prosecution of Music Piracy Impact Music Sales?," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 46(1), pages 59-71, March.

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    More about this item

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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