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Property, Liability and Market Power: The Antitrust Side of Copyright

Author

Listed:
  • Nicita Antonio

    (Università di Siena)

  • Ramello Giovanni B.

    (Università del Piemonte Orientale)

Abstract

This paper investigates the interplay between copyright law and antitrust law in two distinct respects. We first argue that the origin of copyright seems to be rooted not only in the need to foster the production and the spread of knowledge but also in the necessity of limiting market power on the side of distributors. We then show the potential impact on market competition of the evolution of copyright as a property rule. While property rules reduce transaction costs in the standard case of bilateral monopoly over the exchange of information goods, they might increase transaction costs. When coupled with market power, a property rule enables the right holder to control uses and prices so as to implement entry deterrence strategies against potential competitors. Conversely, we argue that reversing property rules in favor of competitors or switching to liability rules for copyright may restore competitive outcomes. This conclusion brings new insights on the application of the essential facility doctrine to copyrighted works.

Suggested Citation

  • Nicita Antonio & Ramello Giovanni B., 2007. "Property, Liability and Market Power: The Antitrust Side of Copyright," Review of Law & Economics, De Gruyter, vol. 3(3), pages 767-791, December.
    • Handle: RePEc:bpj:rlecon:v:3:y:2007:i:3:n:7
    DOI: 10.2202/1555-5879.1160
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    Cited by:

    1. Simplice A. Asongu & Antonio R. Andrés, 2017. "The impact of software piracy on inclusive human development: evidence from Africa," International Review of Applied Economics, Taylor & Francis Journals, vol. 31(5), pages 585-607, September.
    2. Bia, Michela, 2007. "The Propensity Score method in public policy evaluation: a survey," POLIS Working Papers 79, Institute of Public Policy and Public Choice - POLIS.
    3. Giovanni Ramello, 2011. "Property rights and externalities: the uneasy case of knowledge," European Journal of Law and Economics, Springer, vol. 31(1), pages 123-141, February.
    4. Marchese, Carla & Privileggi, Fabio, 2007. "Increasing the efficiency of the 'Studi di Settore' might backfire," POLIS Working Papers 83, Institute of Public Policy and Public Choice - POLIS.
    5. Stefania Ottone & Ferrucio Ponzano & Roberto Ricciuti, 2009. "Simulating Voting Rule Reforms for the Italian Parliament: An Economic Perspective," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 3(3), pages 292-304, October.
    6. Matteo Migheli & Giovanni Ramello, 2013. "Open access, social norms and publication choice," European Journal of Law and Economics, Springer, vol. 35(2), pages 149-167, April.
    7. Breton, Albert & Scott, Anthony & Fraschini, Angela, 2007. "Explaining differences in environmental governance patterns between Canada, Italy and the United States," POLIS Working Papers 87, Institute of Public Policy and Public Choice - POLIS.
    8. Privileggi, Fabio, 2007. "The cutoff policy of taxation when CRRA taxpayers differ in risk aversion coefficients and income: a proof," POLIS Working Papers 99, Institute of Public Policy and Public Choice - POLIS.
    9. Matteo Migheli & Giovanni Battista Ramello, 2018. "The market of academic attention," Scientometrics, Springer;Akadémiai Kiadó, vol. 114(1), pages 113-133, January.
    10. Matteo Migheli & Giovanni B. Ramello, 2013. "Open Access, Social Norms & Publication Choice," ICER Working Papers 03-2013, ICER - International Centre for Economic Research.
    11. Bia, Michela & Mattei, Alessandra, 2007. "Application of the Generalized Propensity Score. Evaluation of public contributions to Piedmont enterprises," POLIS Working Papers 80, Institute of Public Policy and Public Choice - POLIS.
    12. Daron Acemoglu & Davide Ticchi & Andrea Vindigni, 2010. "A Theory of Military Dictatorships," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(1), pages 1-42, January.
    13. Noemí Pulido Pavón & Luis Palma Martos, 2014. "Effectiveness of Intellectual Property Regimes: 2006-2011," GEMF Working Papers 2014-12, GEMF, Faculty of Economics, University of Coimbra.
    14. Origgi, Gloria & Ramello, Giovanni B. & Silva, Francesco, 2014. "Publish or Perish. Causes and consequences of a paradigm," POLIS Working Papers 176, Institute of Public Policy and Public Choice - POLIS.
    15. Noemí Pulido Pavón & Luis Palma Martos & Luis F. Aguado, 2016. "Derechos de autor. Enfoque económico, evolución y perspectivas," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 18(35), pages 151-169, July-Dece.
    16. Marchese, Carla, 2008. "The limits to growth then and now," POLIS Working Papers 105, Institute of Public Policy and Public Choice - POLIS.
    17. Ariel Katz, 2013. "Copyright and competition policy," Chapters, in: Ruth Towse & Christian Handke (ed.), Handbook on the Digital Creative Economy, chapter 19, pages 209-221, Edward Elgar Publishing.
    18. Davide Ticchi & Andrea Vindigni, 2007. "War and Endogenous Democracy," Working Papers 0715, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2007.
    19. Stefania Ottone & Ferruccio Ponzano, 2011. "How people perceive the Welfare State: a real-effort experiment," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(2), pages 165-183, June.
    20. Stefania Ottone, 2008. "Are people Samaritans or Avengers?," Economics Bulletin, AccessEcon, vol. 3(10), pages 1-3.
    21. Ottone, Stefania & Ponzano, Ferruccio, 2007. "Non-self-centered inequity aversion matters. A model," POLIS Working Papers 91, Institute of Public Policy and Public Choice - POLIS.
    22. Alberto Cassone & Giovanni Ramello, 2011. "The simple economics of class action: private provision of club and public goods," European Journal of Law and Economics, Springer, vol. 32(2), pages 205-224, October.
    23. Montefiori, Marcello & Resta, Marina, 2008. "Social influence and neighbourhood effects in the health care market," POLIS Working Papers 98, Institute of Public Policy and Public Choice - POLIS.
    24. Bissey, Marie-Edith & Ortona, Guido, 2007. "The program for the simulation of electoral systems ALEX4.1: what it does and how to use it," POLIS Working Papers 82, Institute of Public Policy and Public Choice - POLIS.
    25. Thomas Eger & Marc Scheufen, 2021. "Economic perspectives on the future of academic publishing: Introduction to the special issue," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(8), pages 1922-1932, December.

    More about this item

    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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