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Digital piracy : theory

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  • BELLEFLAMME, Paul

    () (Université catholique de Louvain, CORE and Louvain School of Management, B-1348 Louvain-la-Neuve, Belgium)

  • PEITZ, Martin

    () (Department of Economics, University of Mannheim, D-68131 Mannheim, Germany)

Abstract

This article reviews recent theoretical contributions on digital piracy. It starts by elaborating on the reasons for intellectual property protection, by reporting a few facts about copyright protection, and by examining reasons to become a digital pirate. Next, it provides an exploration of the consequences of digital piracy, using a base model and several extensions (with consumer sampling, network effects, and indirect appropriation). A closer look at market-structure implications of end-user piracy is then taken. After a brief review of commercial piracy, additional legal and private responses to end-user piracy are considered. Finally, a quick look at emerging new business models is taken.

Suggested Citation

  • BELLEFLAMME, Paul & PEITZ, Martin, 2010. "Digital piracy : theory," CORE Discussion Papers 2010060, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:2010060
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    File URL: http://www.uclouvain.be/cps/ucl/doc/core/documents/coredp2010_60web.pdf
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    References listed on IDEAS

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    1. MartI´nez-Sánchez, Francisco, 2010. "Avoiding commercial piracy," Information Economics and Policy, Elsevier, vol. 22(4), pages 398-408, December.
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    Cited by:

    1. Thomes, Tim Paul, 2011. "An economic analysis of online streaming: How the music industry can generate revenues from cloud computing," ZEW Discussion Papers 11-039 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Avinadav, Tal & Chernonog, Tatyana & Perlman, Yael, 2014. "Analysis of protection and pricing strategies for digital products under uncertain demand," International Journal of Production Economics, Elsevier, vol. 158(C), pages 54-64.
    3. Sylvain Dejean & Thierry Pénard & Raphaël Suire, 2010. "La gratuité est-elle une fatalité sur les marchés numériques ? Une étude sur le consentement à payer pour des offres de contenus audiovisuels sur internet," Economie & Prévision, La Documentation Française, vol. 0(3), pages 15-32.
    4. Budzinski, Oliver & Monostori, Katalin, 2012. "Intellectual property rights and the WTO," Ilmenau Economics Discussion Papers 71, Ilmenau University of Technology, Institute of Economics.
    5. Aguiar, Luis & Martens, Bertin, 2016. "Digital music consumption on the Internet: Evidence from clickstream data," Information Economics and Policy, Elsevier, vol. 34(C), pages 27-43.
    6. Gomes, Nicolas Dias & Cerqueira, Pedro André & Almeida, Luís Alçada, 2015. "A survey on software piracy empirical literature: Stylized facts and theory," Information Economics and Policy, Elsevier, vol. 32(C), pages 29-37.
    7. Martyna Kobus & Michał Krawczyk, 2013. "Piracy as an ethical decision," Working Papers 2013-22, Faculty of Economic Sciences, University of Warsaw.

    More about this item

    Keywords

    information good; piracy; copyright; IP protection; internet; peer-to-peer; software; music;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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