Impact of Network Externality on End-User Piracy: Revisited

Authors

Sougata Poddar, Chapman UniversityFollow
Yuanzhu Lu, Central University of Finance and Economics, Beijing

Document Type

Article

Publication Date

2017

Abstract

We revisit the issue whether a strong presence of network externality in the digital products market could be a reason for the copyright holders to allow piracy. We find that except under a limited circumstance this is not true in a framework that involves IPR protection and copyright holder's costly effort to prevent piracy. We further show that as the degree of network externality increases, the strategic piracy deterrence level of the copyright holder increases and the actual rate of piracy decreases.

Comments

This article was originally published in Economics Bulletin, volume 37, in 2017.

Recommended Citation

Poddar, S., & Lu, Y. (2017). Impact of network externality on end-user piracy: Revisited. Economics Bulletin, 37, 1457-1467.

Peer Reviewed

1

Copyright

Economics Bulletin