TEL  Vol.4 No.9 , December 2014
Learning by Copying a Piratable Good
ABSTRACT
In this paper, we analyze the behavior of a multiproduct monopolist, a duopolist and consumers who are able to learn by copying. We show that the DRM systems implemented by the digital industry have adverse consequences, because they hinder the use of original goods and provide consumers with an incentive for copying. Finally, we show that the Cournot effect may fail, unlike previous studies.

Cite this paper
Martínez-Sánchez, F. (2014) Learning by Copying a Piratable Good. Theoretical Economics Letters, 4, 787-794. doi: 10.4236/tel.2014.49099.
References
[1]   Duchêne, A. and Waelbroeck, P. (2006) The Legal and Technological Battle in the Music Industry: Information-Push versus Information-Pull Technologies. International Review of Law and Economics, 26, 565-580. http://dx.doi.org/10.1016/j.irle.2007.01.008

[2]   Belleflamme, P. and Picard, P.M. (2007) Piracy and Competition. Journal of Economic and Management Strategic, 16, 351-383. http://dx.doi.org/10.1111/j.1530-9134.2007.00142.x

[3]   Martínez-Sánchez, F. (2011) Collusion, Competition and Piracy. Applied Economics Letters, 18, 1043-1047. http://dx.doi.org/10.1080/13504851.2010.522514

[4]   Martínez-Sánchez, F. (2010) Avoiding Commercial Piracy. Information Economics and Policy, 22, 398-408. http://dx.doi.org/10.1016/j.infoecopol.2010.07.002

[5]   Martínez-Sánchez, F. (2013) Time to Market and Impatient Customers. Bulletin of Economic Research, 65, 194-202. http://dx.doi.org/10.1111/j.1467-8586.2011.00421.x

[6]   López-Cuñat, J.M. and Martínez-Sánchez, F. Anti-Piracy Policy and Quality Differential in Markets for Information Goods. European Journal of Law and Economics.

[7]   Peitz, M. and Waelbroeck, P. (2006) Piracy of Digital Products: A Critical Review of the Theoretical Literature. Information Economics and Policy, 18, 449-476.
http://dx.doi.org/10.1016/j.infoecopol.2006.06.005

[8]   Belleflamme, P. and Peitz, M. (2012) Digital Piracy: Theory. In: Peitz, M. and Waldfogel, J., Eds., The Oxford Handbook of the Digital Economy, Oxford University Press, Oxford, 489-530.

[9]   Dejean, S. (2009) What Can We Learn from Empirical Studies about Piracy? CESifo Economic Studies, 55, 326-352. http://dx.doi.org/10.1093/cesifo/ifp006

 
 
Top