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The Intertemporal Consequences of Unauthorized Reproduction of Intellectual Property

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  • Takeyama, Lisa N

Abstract

In an intertemporal framework, the harm to firms from unauthorized reproduction of their products may be significantly greater than that predicted by most static models; copying by some consumers reduces the appropriable surplus from all consumers--including those consumers lacking any propensity to copy. Somewhat paradoxically, however, the commitment value of copies may also imply that profits are higher with copying than without copying. It is therefore suggested that firms may prefer differential copyright enforcement and that the commitment value of copies may offer a strategic explanation for free giveaways of abridged versions of intellectual property and vertical product differentiation more generally. Copyright 1997 by the University of Chicago.

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  • Takeyama, Lisa N, 1997. "The Intertemporal Consequences of Unauthorized Reproduction of Intellectual Property," Journal of Law and Economics, University of Chicago Press, vol. 40(2), pages 511-522, October.
    • Handle: RePEc:ucp:jlawec:v:40:y:1997:i:2:p:511-22
    DOI: 10.1086/467382
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    References listed on IDEAS

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    1. Takeyama, Lisa N, 1994. "The Welfare Implications of Unauthorized Reproduction of Intellectual Property in the Presence of Demand Network Externalities," Journal of Industrial Economics, Wiley Blackwell, vol. 42(2), pages 155-166, June.
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