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Software Piracy: A Critical Survey of the Theoretical and Empirical Literature

Author

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  • Nicolas Dias Gomes

    () (Faculty of Economics, University of Coimbra and INESC-Coimbra, Portugal)

  • Pedro André Cerqueira

    (Faculty of Economics, University of Coimbra and GEMF, Portugal)

  • Luís Alçada Almeida

    (Faculty of Economics, University of Coimbra and INESC-Coimbra, Portugal)

Abstract

As devices that used software became available to the masses the problem of software piracy arose. Recent theoretical works modeled the software piracy phenomenon; others tried to empirically explain the determinants that can explain this phenomenon. Empirical literature in the latter case is still in it´s infancy. This chapter reviews the theoretical literature focusing on three major models, those that deal with diffusion models, network externalities and with game theory. It also presents the empirical literature in which we identify eight stylized results that reflect key variables across five macroeconomic dimensions that explain software piracy: Economic, Cultural, Technological, Legal and Educational dimensions.

Suggested Citation

  • Nicolas Dias Gomes & Pedro André Cerqueira & Luís Alçada Almeida, 2014. "Software Piracy: A Critical Survey of the Theoretical and Empirical Literature," GEMF Working Papers 2014-05, GEMF, Faculty of Economics, University of Coimbra.
  • Handle: RePEc:gmf:wpaper:2014-05.
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    File URL: http://www.uc.pt/feuc/gemf/working_papers/pdf/2014/gemf_2014-05
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    References listed on IDEAS

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    1. Rodrigo Martins & Francisco José Veiga, 2012. "Turnout and the modeling of economic conditions: Evidence from Portuguese elections," NIPE Working Papers 01/2012, NIPE - Universidade do Minho.
    2. Sougata Poddar, 2005. "Why Software Piracy Rates Differ – A Theoretical Analysis," Departmental Working Papers wp0515, National University of Singapore, Department of Economics.
    3. 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.
    4. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    5. Justina A.V. Fischer & Antonio Rodríguez Andrés, 2005. "Is Software Piracy a Middle Class Crime? Investigating the inequality-piracy channel," University of St. Gallen Department of Economics working paper series 2005 2005-18, Department of Economics, University of St. Gallen.
    6. 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.
    7. Holm Håkan J., 2003. "Can economic theory explain piracy behavior?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(1), pages 1-18, April.
    8. Robert L Ostergard, 2000. "The Measurement of Intellectual Property Rights Protection," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(2), pages 349-360, June.
    9. Rajeev Goel & Michael Nelson, 2009. "Determinants of software piracy: economics, institutions, and technology," The Journal of Technology Transfer, Springer, vol. 34(6), pages 637-658, December.
    10. Marron, Donald B & Steel, David G, 2000. "Which Countries Protect Intellectual Property? The Case of Software Piracy," Economic Inquiry, Western Economic Association International, vol. 38(2), pages 159-174, April.
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    Cited by:

    1. Simplice A. Asongu & Antonio R. Andrés, 2017. "The impact of software piracy on inclusive human development: evidence from Africa," International Review of Applied Economics, Taylor & Francis Journals, vol. 31(5), pages 585-607, September.
    2. Noemí Pulido Pavón & Luis Palma Martos, 2014. "Effectiveness of Intellectual Property Regimes: 2006-2011," GEMF Working Papers 2014-12, GEMF, Faculty of Economics, University of Coimbra.

    More about this item

    Keywords

    Software Piracy; Copyright; Intellectual Property Rights.;

    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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