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Network Externality and Commercial Software Piracy

  • Sougata Poddar

    ()

    (Department of Economics, National University of Singapore)

Contrary to the earlier findings under end-users piracy where the existence of strong network externality was shown to be a reason for allowing limited piracy, we find when the piracy is commercial in nature the optimal policy for the original software developer is to protect its product irrespective of the strength of network externality in the software users market.

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File URL: http://www.fas.nus.edu.sg/ecs/pub/wp/wp0516.pdf
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Paper provided by National University of Singapore, Department of Economics in its series Departmental Working Papers with number wp0516.

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Length: 11 pages
Date of creation: Dec 2005
Date of revision:
Handle: RePEc:nus:nusewp:wp0516
Contact details of provider: Web page: http://www.fas.nus.edu.sg/ecs/index.html

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  1. 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.
  2. SHY, Oz & THISSE, Jacques-François, . "A strategic approach to software protection," CORE Discussion Papers RP -1413, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Kathleen Reavis Conner & Richard P. Rumelt, 1991. "Software Piracy: An Analysis of Protection Strategies," Management Science, INFORMS, vol. 37(2), pages 125-139, February.
  4. Banerjee, Dyuti S., 2003. "Software piracy: a strategic analysis and policy instruments," International Journal of Industrial Organization, Elsevier, vol. 21(1), pages 97-127, January.
  5. Joshua Slive & Dan Bernhardt, 1998. "Pirated for Profit," Canadian Journal of Economics, Canadian Economics Association, vol. 31(4), pages 886-899, November.
  6. Gayer, Amit & Shy, Oz, 2003. "Copyright protection and hardware taxation," Information Economics and Policy, Elsevier, vol. 15(4), pages 467-483, December.
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