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Using survey data on movie consumption by about 500 University of Pennsylvania undergraduate students, we ask whether unpaid consumption of movies displaces paid consumption. A variety of cross-sectional and longitudinal empirical approaches show large and statistically significant evidence of displacement. In the most appropriate empirical specification, we find that unpaid first consumption reduces paid consumption by about 1 unit. Unpaid second consumption has a smaller effect, about 0.20 units. Our analysis indicates that unpaid consumption, which makes up 5.2 per cent of movie viewing in our sample, reduced paid consumption in our sample by 3.5 per cent. Copyright 2007 Blackwell Publishing Ltd..

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  • Rafael Rob & Joel Waldfogel, 2007. "PIRACY ON THE SILVER SCREEN -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 55(3), pages 379-395, September.
  • Handle: RePEc:bla:jindec:v:55:y:2007:i:3:p:379-395

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    References listed on IDEAS

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    Cited by:

    1. Stan J. Liebowitz & Alejandro Zentner, 2016. "The internet as a celestial TiVo: What can we learn from cable television adoption?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 40(3), pages 285-308, August.
    2. George Lisa M, 2008. "The Internet and the Market for Daily Newspapers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-33, July.
    3. Dalton, John T. & Leung, Tin Cheuk, 2017. "Strategic decision-making in Hollywood release gaps," Journal of International Economics, Elsevier, vol. 105(C), pages 10-21.
    4. Joëlle Farchy & Mathilde Gansemer & Jessica Petrou, 2013. "E-book and book publishing," Chapters,in: Handbook on the Digital Creative Economy, chapter 31, pages 353-364 Edward Elgar Publishing.
    5. Stan J. Liebowitz, 2013. "Internet piracy: the estimated impact on sales," Chapters,in: Handbook on the Digital Creative Economy, chapter 23, pages 262-273 Edward Elgar Publishing.
    6. Stan J. Liebowitz, 2014. "The impacts of internet piracy," Chapters,in: Handbook on the Economics of Copyright, chapter 13, pages 225-240 Edward Elgar Publishing.
    7. McKenzie, Jordi, 2017. "Graduated response policies to digital piracy: Do they increase box office revenues of movies?," Information Economics and Policy, Elsevier, vol. 38(C), pages 1-11.

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