Montoro-Pons and Cuadrado-García (2006)

Source Details

Montoro-Pons and Cuadrado-García (2006)
Title:	Digital goods and the effects of copying: an empirical study of the music market
Author(s):	Montoro-Pons, J. D., Cuadrado-García, M.
Year:	2006
Citation:	Montoro-Pons, Juan D., and Manuel Cuadrado-García. "Digital goods and the effects of copying: an empirical study of the music market." 14th International Conference on Cultural Economics, Vienna. 2006.
Link(s):	, Open Access
Key Related Studies:
Discipline:
Linked by:

About the Data
Data Description:
Data Type:
Secondary Data Sources:
Data Collection Methods:
Data Analysis Methods:
Industry(ies):
Country(ies):
Cross Country Study?:	No
Comparative Study?:	No
Literature review?:
Government or policy study?:
Time Period(s) of Collection:
Funder(s):

Abstract

Digital goods, streams of information stored in bits with economic value, have transformed the way many economic agents interact in markets and specially those in the cultural sector. The non-rival nature of its consumption has had a significant impact in different industries, specially the music industry: record labels have witnessed in the last decade a proliferation of the means to circumvent copyright in protected materials. This paper aims at assessing the impact of piracy on legal demand. Unlike previous studies we address the issue from a wider perspective, considering both physical and online piracy. Our findings show that there is a substitution effect between copies and originals, and that there is no significant positive effect of piracy on legal demand, which rules out the possibility of network effects or sampling effects much discussed in the literature on piracy. Moreover we find that lost sales amount to a 131% of the legal market on the average, even though there is a wide variation between countries.

Coverage of Study

Coverage of Fundamental Issues

Issue	Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?
Harmony of interest assumption between authors and publishers (creators and producers/investors)
Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption)
Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)

Coverage of Evidence Based Policies

Issue	Included within Study
Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right)
Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction)
Mass digitisation/orphan works (non-use; extended collective licensing)
Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability)
Fair remuneration (levies; copyright contracts)
Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)