IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-00262515.html
   My bibliography  Save this paper

Market Piracy in the Design-Based Industry : Economics and Policy regulation

Author

Listed:
  • Pierre-Jean Benghozi

    (CRG - Centre de recherche en gestion - Polytechnique - X - CNRS - Centre National de la Recherche Scientifique)

  • Walter Santagata

    (CRG - Centre de recherche en gestion - Polytechnique - X - CNRS - Centre National de la Recherche Scientifique)

Abstract

Market piracy in the design-based industry is an expanding worldwide phenomenon (Grossman and Shapiro, 1988a,b; Chaudhry and Walsh, 1996; Schultz II and Saprito, 1996). It deserves a great deal of attention both because of its impressive international dimension (Verma, 1996) and its intrinsic illegality, ambiguity and powerfull potential links with criminal organizations (Andreano and Sigfried, 1980; Fiorentini and Peltzman, 1995). The aim of this paper is to develop theoretical arguments about economic agents' behavior and to shed some light on the main regulatory issues of illegal markets. At a first sight the room for rational incentives to commercial piracy is self-evident. On one hand, an original backpack by the Italian stylist Prada costs, for instance, $ 510 in Manhattan, New York, and a bootleg copy costs $ 70 in Rome, just in front of Castel Sant'Angelo. On the other hand, the number of units sold can be impressive: as an example Louis Vuitton sells 3.5 millions units per year. Market piracy is usually noticed in sectors such as luxury goods or fashion, but piracy can also be observed in more traditional sectors such as car manufacturers, "bureautic" industry, cooking utensils, aircraft-parts and so on.

Suggested Citation

  • Pierre-Jean Benghozi & Walter Santagata, 2001. "Market Piracy in the Design-Based Industry : Economics and Policy regulation," Post-Print hal-00262515, HAL.
  • Handle: RePEc:hal:journl:hal-00262515 Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00262515
    as

    Download full text from publisher

    File URL: https://hal.archives-ouvertes.fr/hal-00262515/document
    Download Restriction: no

    References listed on IDEAS

    as
    1. Landes, William M & Posner, Richard A, 1987. "Trademark Law: An Economic Perspective," Journal of Law and Economics, University of Chicago Press, vol. 30(2), pages 265-309, October.
    2. Gene M. Grossman & Carl Shapiro, 1986. "Foreign Counterfeiting of Status Goods," NBER Working Papers 1915, National Bureau of Economic Research, Inc.
    3. Gene M. Grossman & Carl Shapiro, 1988. "Foreign Counterfeiting of Status Goods," The Quarterly Journal of Economics, Oxford University Press, vol. 103(1), pages 79-100.
    4. Filip Palda, 1998. "Evasive Ability and the Efficiency Cost of the Underground Economy," Canadian Journal of Economics, Canadian Economics Association, vol. 31(5), pages 1118-1138, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Santagata Walter, 2002. "Some effect of creativity on fashion market behavior," EBLA Working Papers 200205, University of Turin.
    2. Christian Barrère & Sophie Delabruyère, 2011. "Intellectual property rights on creativity and heritage: the case of the fashion industry," European Journal of Law and Economics, Springer, vol. 32(3), pages 305-339, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-00262515. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.