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Digital Rights Management and the Pricing of Digital Products

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  • Yooki Park
  • Suzanne Scotchmer

Abstract

Digital products such as movies, music and computer software are protected both by self-help measures such as encryption and copy controls, and by the legal right to prevent copying. We explore how digital rights management and other technical protections a®ect the pricing of content, and consequently, why content users, content vendors, and antitrust authorities might have di®erent views on what technical capabilities should be deployed. We discuss the potential for \collusion through technology."
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Suggested Citation

  • Yooki Park & Suzanne Scotchmer, 2005. "Digital Rights Management and the Pricing of Digital Products," Levine's Bibliography 784828000000000402, UCLA Department of Economics.
    • Handle: RePEc:cla:levrem:784828000000000402
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Kiema, Ilkka, 2008. "Commercial piracy and intellectual property policy," Journal of Economic Behavior & Organization, Elsevier, vol. 68(1), pages 304-318, October.
    2. Jin-Hyuk Kim & Tin Cheuk Leung, 2013. "Quantifying the Impacts of Digital Rights Management and E-Book Pricing on the E-Book Reader Market," Working Papers 13-03, NET Institute.
    3. Choi, Pilsik & Bae, Sang Hoo & Jun, Jongbyung, 2010. "Digital piracy and firms' strategic interactions: The effects of public copy protection and DRM similarity," Information Economics and Policy, Elsevier, vol. 22(4), pages 354-364, December.
    4. Dyuti Banerjee, 2011. "On the sufficiency of regulatory enforcement in combating piracy," Journal of Regulatory Economics, Springer, vol. 40(2), pages 160-176, October.
    5. Mortimer, Julie Holland & Nosko, Chris & Sorensen, Alan, 2012. "Supply responses to digital distribution: Recorded music and live performances," Information Economics and Policy, Elsevier, vol. 24(1), pages 3-14.
    6. Ahn, Illtae & Shin, Ilsoon, 2010. "On the optimal level of protection in DRM," Information Economics and Policy, Elsevier, vol. 22(4), pages 341-353, December.
    7. Michael O’Hare, 2005. "Free Culture: How Big Media Uses Technology and the Law to Lock Down Culture and Control Creativity," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 29(2), pages 148-152, May.
    8. Bae Sang Hoo & Kim Myungsup & Yoo Kyeongwon, 2017. "The Effect of Piracy and Digital Rights Management on Vertically Related Content Industries," Review of Network Economics, De Gruyter, vol. 16(1), pages 1-26, March.
    9. Dyuti S. Banerjee & Tanmoyee Banerjee (Chatterjee) & Ajitava Raychaudhuri, 2008. "Optimal Enforcement And Anti‐Copying Strategies To Counter Copyright Infringement," The Japanese Economic Review, Japanese Economic Association, vol. 59(4), pages 519-535, December.
    10. Dyuti S. Banerjee, 2014. "Effectiveness of government anti-piracy enforcement policy: commitment versus non-commitment," Chapters, in: Richard Watt (ed.), Handbook on the Economics of Copyright, chapter 15, pages 264-284, Edward Elgar Publishing.
    11. Kim, Jin-Hyuk & Leung, Tin Cheuk, 2021. "Eliminating digital rights management from the E-book market," Information Economics and Policy, Elsevier, vol. 57(C).
    12. Tsai, Ming-Fang & Chiou, Jiunn-Rong & Lin, Chun-Hung A., 2012. "A model of counterfeiting: A duopoly approach," Japan and the World Economy, Elsevier, vol. 24(4), pages 283-291.
    13. Jin-Hyuk Kim, 2008. "Digital Rights Management and Technological Tying," Working Papers 08-05, NET Institute, revised Sep 2008.

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    More about this item

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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