Difference between revisions of "Piolatto and Schuett (2012)"
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|Source={{Source | |Source={{Source | ||
|Name of Study=Piolatto and Schuett (2012) | |Name of Study=Piolatto and Schuett (2012) | ||
− | |Author= | + | |Author=Piolatto, A.; Schuett, F.; |
|Title=Music piracy: A case of “The Rich Get Richer and the Poor Get Poorer" | |Title=Music piracy: A case of “The Rich Get Richer and the Poor Get Poorer" | ||
|Year=2012 | |Year=2012 | ||
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does not carry over to less popular artists, who are often harmed by piracy. We conclude that piracy tends to reduce musical variety. | does not carry over to less popular artists, who are often harmed by piracy. We conclude that piracy tends to reduce musical variety. | ||
|Authentic Link=http://www.sciencedirect.com/science/article/pii/S0167624512000030 | |Authentic Link=http://www.sciencedirect.com/science/article/pii/S0167624512000030 | ||
− | |Reference=Shapiro and Varian (1999); Liebowitz (1985); Peitz and Waelbroeck (2006a); Yoon (2002); Gayer and Shy (2006); | + | |Reference=Shapiro and Varian (1999);Liebowitz (1985);Peitz and Waelbroeck (2006a);Yoon (2002);Gayer and Shy (2006); |
|Plain Text Proposition=The impact of piracy varies depending on the artist’s popularity. Our findings generalize a result found in a different setup by Gayer and Shy (2006). Like them, we show that piracy is beneficial to popular artists when side revenues are important. However, in our model this does not necessarily carry over to less popular artists: under plausible conditions on the parameters governing quality degradation and copying costs, these artists are harmed by piracy, and this can occur even when side revenues are large enough for piracy to benefit popular artists. Therefore, we have argued that piracy may be bad for social welfare since in the long run it may reduce musical variety. To conclude, let us briefly note that this negative result is mitigated when piracy, through its effect on recognition, has a positive impact on the probability of a relatively unpopular artist to become a star, as in Alcalá and González-Maestre (2010), which is likely to be the case in the presence of imperfections in the talent revelation process (Terviö, 2009, see). | |Plain Text Proposition=The impact of piracy varies depending on the artist’s popularity. Our findings generalize a result found in a different setup by Gayer and Shy (2006). Like them, we show that piracy is beneficial to popular artists when side revenues are important. However, in our model this does not necessarily carry over to less popular artists: under plausible conditions on the parameters governing quality degradation and copying costs, these artists are harmed by piracy, and this can occur even when side revenues are large enough for piracy to benefit popular artists. Therefore, we have argued that piracy may be bad for social welfare since in the long run it may reduce musical variety. To conclude, let us briefly note that this negative result is mitigated when piracy, through its effect on recognition, has a positive impact on the probability of a relatively unpopular artist to become a star, as in Alcalá and González-Maestre (2010), which is likely to be the case in the presence of imperfections in the talent revelation process (Terviö, 2009, see). | ||
− | |FundamentalIssue=1. Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare, 5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media), 3. Harmony of interest assumption between authors and publishers (creators and producers/investors) | + | |FundamentalIssue=1. Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare,5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media),3. Harmony of interest assumption between authors and publishers (creators and producers/investors) |
− | |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=K42: Illegal Behavior and the Enforcement of Law, L82: Entertainment • Media, O34: Intellectual Property and Intellectual Capital | |Discipline=K42: Illegal Behavior and the Enforcement of Law, L82: Entertainment • Media, O34: Intellectual Property and Intellectual Capital | ||
− | |Intervention-Response=* Piracy is not necessarily bad for the creators of music. | + | |Intervention-Response=* Piracy is not necessarily bad for the creators of music.* The most successful artists are likely to feel the least effect of piracy.* This means that less successful and newer artists feel more effect from piracy and this may be a barrier to joining the industry, leading to lower social welfare for consumers who will have less choice in the musicians available. |
− | * The most successful artists are likely to feel the least effect of piracy. | ||
− | * This means that less successful and newer artists feel more effect from piracy and this may be a barrier to joining the industry, leading to lower social welfare for consumers who will have less choice in the musicians available. | ||
|Description of Data=This study is a literature review and refers to previous empirical studies and economic models on the effects of file sharing on the music industry. The authors create a new economic model to compare the different effect of piracy on successful musicians and also smaller, less successful (in terms of sales) musicians. The authors go on to examine the potential positive effects of piracy on overall income. No primary or secondary data is in the study. | |Description of Data=This study is a literature review and refers to previous empirical studies and economic models on the effects of file sharing on the music industry. The authors create a new economic model to compare the different effect of piracy on successful musicians and also smaller, less successful (in terms of sales) musicians. The authors go on to examine the potential positive effects of piracy on overall income. No primary or secondary data is in the study. | ||
|Data Year=No data | |Data Year=No data | ||
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|Funded By=Amedeo Piolatto acknowledges financial support from IVIE, the Spanish Ministry of Science and Innovation (Grant ECO2009-12680), the Barcelona GS Research Network and the Generalitat de Catalunya (Grant 2009 SGR 102).; | |Funded By=Amedeo Piolatto acknowledges financial support from IVIE, the Spanish Ministry of Science and Innovation (Grant ECO2009-12680), the Barcelona GS Research Network and the Generalitat de Catalunya (Grant 2009 SGR 102).; | ||
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Latest revision as of 13:46, 20 April 2020
Contents
Source Details
Piolatto and Schuett (2012) | |
Title: | Music piracy: A case of “The Rich Get Richer and the Poor Get Poorer" |
Author(s): | Piolatto, A., Schuett, F. |
Year: | 2012 |
Citation: | Piolatto, Amedeo, and Florian Schuett. Music piracy: A case of “the rich get richer and the poor get poorer”. Information Economics and Policy 24.1 (2012): 30-39. |
Link(s): | Definitive |
Key Related Studies: | |
Discipline: | |
Linked by: |
About the Data | |
Data Description: | This study is a literature review and refers to previous empirical studies and economic models on the effects of file sharing on the music industry. The authors create a new economic model to compare the different effect of piracy on successful musicians and also smaller, less successful (in terms of sales) musicians. The authors go on to examine the potential positive effects of piracy on overall income. No primary or secondary data is in the study. |
Data Type: | |
Secondary Data Sources: | |
Data Collection Methods: | |
Data Analysis Methods: | |
Industry(ies): | |
Country(ies): | |
Cross Country Study?: | Yes |
Comparative Study?: | Yes |
Literature review?: | Yes |
Government or policy study?: | No |
Time Period(s) of Collection: |
|
Funder(s): |
|
Abstract
There is evidence that music piracy has differential effects on artists depending on their popularity. We present a model of music piracy with endogenous copying costs: consumers'costs of illegal downloads increase with the scarcity of a recording and are therefore negatively related to the number of originals sold. Allowing for a second source of revenues apart from record sales, we show that piracy can hurt some artists while benefiting others. Under plausible assumptions, piracy is beneficial to the most popular artists. However, this does not carry over to less popular artists, who are often harmed by piracy. We conclude that piracy tends to reduce musical variety.
Main Results of the Study
The impact of piracy varies depending on the artist’s popularity. Our findings generalize a result found in a different setup by Gayer and Shy (2006). Like them, we show that piracy is beneficial to popular artists when side revenues are important. However, in our model this does not necessarily carry over to less popular artists: under plausible conditions on the parameters governing quality degradation and copying costs, these artists are harmed by piracy, and this can occur even when side revenues are large enough for piracy to benefit popular artists. Therefore, we have argued that piracy may be bad for social welfare since in the long run it may reduce musical variety. To conclude, let us briefly note that this negative result is mitigated when piracy, through its effect on recognition, has a positive impact on the probability of a relatively unpopular artist to become a star, as in Alcalá and González-Maestre (2010), which is likely to be the case in the presence of imperfections in the talent revelation process (Terviö, 2009, see).
Policy Implications as Stated By Author
- Piracy is not necessarily bad for the creators of music.* The most successful artists are likely to feel the least effect of piracy.* This means that less successful and newer artists feel more effect from piracy and this may be a barrier to joining the industry, leading to lower social welfare for consumers who will have less choice in the musicians available.
Coverage of Study
Datasets
{{{Dataset}}}