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Piracy in a two-sided software market

  • Rasch, Alexander
  • Wenzel, Tobias

This paper studies the impact of software piracy in a two-sided-market setting. Software platforms attract developers and users to maximize their profits. The equilibrium price structure is affected by piracy: license fees to developers are higher with more software protection but the impact on user prices is ambiguous. A conflict between platforms and software developers over software protection may arise: whereas one side benefits from better protection, the other party loses out. Under platform compatibility, this conflict is no longer present.

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File URL: http://www.sciencedirect.com/science/article/pii/S0167268113000188
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Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 88 (2013)
Issue (Month): C ()
Pages: 78-89

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Handle: RePEc:eee:jeborg:v:88:y:2013:i:c:p:78-89
Contact details of provider: Web page: http://www.elsevier.com/locate/jebo

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