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

  • 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)

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.

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File URL: http://www.uc.pt/feuc/gemf/working_papers/pdf/2014/gemf_2014-05
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Paper provided by GEMF - Faculdade de Economia, Universidade de Coimbra in its series GEMF Working Papers with number 2014-05.

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Length: 32 pages
Date of creation: Jan 2014
Date of revision:
Handle: RePEc:gmf:wpaper:2014-05.
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  1. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
  2. 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.
  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 155-66, June.
  4. Sougata Poddar, 2005. "Why Software Piracy Rates Differ – A Theoretical Analysis," Departmental Working Papers wp0515, National University of Singapore, Department of Economics.
  5. 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.
  6. Robert L Ostergard, 2000. "The Measurement of Intellectual Property Rights Protection," Journal of International Business Studies, Palgrave Macmillan, vol. 31(2), pages 349-360, June.
  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. 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 159-74, April.
  9. 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.
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