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Music Product as a Durable Good and Online Piracy

Author

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  • Sougata Poddar

Abstract

Music is typical experience good and the formats in which music is available; for example, CDs and cassettes or downloaded files are durable in nature. Using these two typical characteristics of the 'music product', in this paper, we develop an analytical framework to study the economic implications of online music piracy. We show that for the legitimate music producer, protection against piracy may not always be the best option; the decision on the degree of limiting piracy depends on the extent of the informational value of music downloads and the quality of the downloaded music

Suggested Citation

  • Sougata Poddar, 2004. "Music Product as a Durable Good and Online Piracy," Econometric Society 2004 Australasian Meetings 365, Econometric Society.
  • Handle: RePEc:ecm:ausm04:365
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    Cited by:

    1. Peitz, Martin & Waelbroeck, Patrick, 2006. "Piracy of digital products: A critical review of the theoretical literature," Information Economics and Policy, Elsevier, vol. 18(4), pages 449-476, November.

    More about this item

    Keywords

    Durable good; Experience good; Downloading; File-sharing; Informational Externality; Copyright protection;

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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