Vertically Related Markets of Collective Licensing of Differentiated Copyrights with Indirect Network Effects
This paper presents a theory of vertically interrelated markets of identical fixed size under implementation of positive indirect network effects. By introducing two Salop circles, a two-sided market model is provided, where intermediaries of differentiated copyrights for intellectual property, like performing rights organizations or publishers, compete as oligopsonists for owners of the intellectual property and as oligopolists for the users of their blanket licenses. We demonstrate, that an increase in competition benefits either license users or copyright owners or harms both groups. Moreover, if license users gain from an increased market entry, the owners of the intellectual property have to incur losses and vice versa.
|Date of creation:||24 Aug 2010|
|Date of revision:|
|Contact details of provider:|| Postal: Carl-Zeiss-Strasse 3, 07743 JENA|
Phone: +049 3641/ 9 43000
Fax: +049 3641/ 9 43000
Web page: http://www.jenecon.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rob, Rafael & Waldfogel, Joel, 2006.
"Piracy on the High C's: Music Downloading, Sales Displacement, and Social Welfare in a Sample of College Students,"
Journal of Law and Economics,
University of Chicago Press, vol. 49(1), pages 29-62, April.
- Rafael Rob & Joel Waldfogel, 2004. "Piracy on the High C's: Music Downloading, Sales Displacement, and Social Welfare in a Sample of College Students," NBER Working Papers 10874, National Bureau of Economic Research, Inc.
- Pollock, R., 2009. "General Network Effects and Welfare," Cambridge Working Papers in Economics 0915, Faculty of Economics, University of Cambridge.
- Gu, Yiquan & Wenzel, Tobias, 2009.
"A note on the excess entry theorem in spatial models with elastic demand,"
International Journal of Industrial Organization,
Elsevier, vol. 27(5), pages 567-571, September.
- Gu, Yiquan & Wenzel, Tobias, 2007. "A Note on the Excess Entry Theorem in Spatial Models with Elastic Demand," Ruhr Economic Papers 33, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
- Dewenter, Ralf & Haucap, Justus & Wenzel, Tobias, 2009.
"Indirect network effects with two salop circles: the example of the music industry,"
FAU Discussion Papers in Economics
09/2009, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
- Dewenter, Ralf & Haucap, Justus & Wenzel, Tobias, 2009. "Indirect network effects with two Salop circles: the example of the music industry," Ilmenau Economics Discussion Papers 63, Ilmenau University of Technology, Institute of Economics.
- Peitz, Martin & Waelbroeck, Patrick, 2006. "Why the music industry may gain from free downloading -- The role of sampling," International Journal of Industrial Organization, Elsevier, vol. 24(5), pages 907-913, September.
- Arghya Ghosh & Hodaka Morita, 2007. "Free entry and social efficiency under vertical oligopoly," RAND Journal of Economics, RAND Corporation, vol. 38(2), pages 541-554, 06.
When requesting a correction, please mention this item's handle: RePEc:jrp:jrpwrp:2010-056. 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: (Markus Pasche)
If references are entirely missing, you can add them using this form.