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Digital Piracy under a Graduated Response Policy

Author

Listed:
  • Michael Arnold
  • Eric Darmon
  • Sylvain Dejean
  • Thierry Penard

Abstract

Graduated response policies (e.g., three-strikes laws) are often adopted to deter repeated criminal activity. In 2009 France passed the Hadopi three-strikes law targeting digital piracy. We model the individual intertemporal decision to engage in illegal activity before and after receiving each strike and, contingent on this decision, the level of illegal content acquisition (piracy) within each stage. We find that monitoring efforts typically believed to deter criminal activity can have unintended results. For example, an increase in the probability of detection can increase piracy. An increase in the punishment is the only policy that unambiguously deters illegal activity.

Suggested Citation

  • Michael Arnold & Eric Darmon & Sylvain Dejean & Thierry Penard, 2019. "Digital Piracy under a Graduated Response Policy," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 175(2), pages 372-393.
    • Handle: RePEc:mhr:jinste:urn:doi:10.1628/jite-2018-0016
    DOI: 10.1628/jite-2018-0016
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    Cited by:

    1. Marc Bourreau & Marianne Lumeau & Francois Moreau & Jordana Viotto da Cruz, 2019. "Recent or Free? An Experimental Study of the Motivations for Pirating Movies," CESifo Working Paper Series 8036, CESifo.

    More about this item

    Keywords

    crime; criminal behavior; three-strikes law; graduated response; detection; deterrence; digital piracy;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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