A model of piracy

Authors

Sang Hoo Bae, Clark UniversityFollow
Jay Pil Choi, Michigan State University

Document Type

Article

Abstract

This paper develops a simple model of software piracy to analyze the short-run effects of piracy on software usage and the long-run effects on development incentives. We consider two types of costs associated with piracy: the reproduction cost that is constant across users and the degradation cost that is proportional to consumers' valuation of the original product. We show that the effects of piracy depend crucially on the nature of piracy costs. Policy implications concerning copyright protection are also discussed. © 2006 Elsevier B.V. All rights reserved.

Publication Title

Information Economics and Policy

Publication Date

2006

Volume

18

Issue

3

First Page

303

Last Page

320

ISSN

0167-6245

DOI

10.1016/j.infoecopol.2006.02.002

Keywords

copyright protection, intellectual property, piracy, self-selection

Repository Citation

Bae, Sang Hoo and Choi, Jay Pil, "A model of piracy" (2006). Economics. 69.
https://commons.clarku.edu/faculty_economics/69