Difference between revisions of "Belleflamme (2002)"
From Copyright EVIDENCE
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|FundamentalIssue=1. Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare, 4. Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption), 2. Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?, | |FundamentalIssue=1. Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare, 4. Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption), 2. Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?, | ||
|EvidenceBasedPolicy=F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness), | |EvidenceBasedPolicy=F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness), | ||
− | |Discipline= | + | |Discipline=L13: Oligopoly and Other Imperfect Markets, L82: Entertainment • Media, L86: Information and Internet Services • Computer Software, O34: Intellectual Property and Intellectual Capital |
|Intervention-Response=* Information goods can be protected by IP laws but the existence of such laws does not on its own guarantee protection | |Intervention-Response=* Information goods can be protected by IP laws but the existence of such laws does not on its own guarantee protection | ||
* Technical measures (such as DRM) can also protect goods but are also imperfect and can be 'cracked' | * Technical measures (such as DRM) can also protect goods but are also imperfect and can be 'cracked' |
Revision as of 09:12, 15 April 2016
Contents
Source Details
Belleflamme (2002) | |
Title: | Pricing Information Goods in the Presence of Copying |
Author(s): | Paul Belleflamme |
Year: | 2002 |
Citation: | Belleflamme, Paul. Pricing information goods in the presence of copying. U of London Queen Mary Economics Working Paper 463 (2002). |
Link(s): | , Open Access |
Key Related Studies: | |
Discipline: | |
Linked by: | Belleflamme, Omrani and Peitz (2015) |
About the Data | |
Data Description: | Analyses two models of copying to determine effects of social welfare |
Data Type: | |
Secondary Data Sources: | |
Data Collection Methods: | |
Data Analysis Methods: | |
Industry(ies): | |
Country(ies): | |
Cross Country Study?: | No |
Comparative Study?: | Yes |
Literature review?: | Yes |
Government or policy study?: | No |
Time Period(s) of Collection: |
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Funder(s): |
Abstract
The effects of (private, small-scale) copying on the pricing behavior of producers of information goods are studied within a unified model a la Mussa-Rosen (1978). When the copying technology involves a marginal cost and no fixed cost, producers act independently. In this simple framework, we highlight the trade-off between ex ante and ex post efficiency considerations (how to provide the right incentives to create whilst limiting monopoly distortions?). When the copying technology involves a fixed cost and no marginal cost, pricing decisions are interdependent. We investigate the strategic pricing game by focussing on some significant symmetric Nash equilibria.
Main Results of the Study
- Copying reduces the overall profits of the producer, but increases the availability of goods at a cheaper price to the consumer
- Therefore overall copying leads to an increase in social welfare
Policy Implications as Stated By Author
- Information goods can be protected by IP laws but the existence of such laws does not on its own guarantee protection
- Technical measures (such as DRM) can also protect goods but are also imperfect and can be 'cracked'
- As a result, illegal copying (piracy) cannot be completely avoided
- It is there important to understand how copying affects the demand for legitimate information goods and the pricing strategy of their producers
- It is also important from a policy perspective to understand the social welfare implications of copying
Coverage of Study
Datasets
Sample size: | 2 |
Level of aggregation: | Models of copying |
Period of material under study: | 1981 to 2001 |