Unauthorized file-sharing and the pricing of digital content

This paper considers the effects on pricing of digital content from unauthorized file-sharing. Producers must not only consider copyright protection, but also the effect on transaction costs from unauthorized file-sharing. That is, less supply caused by a higher price makes the transaction costs hig...

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Bibliographic Details
Published in:Economics letters 2004-11, Vol.85 (2), p.179-184
Main Authors: Domon, Koji, Yamazaki, Naoto
Format: Article
Language:English
Subjects:
Copyright
Digital technology
File-sharing
Illegal copy
Intellectual property
Intellectual property right
Law
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Summary:This paper considers the effects on pricing of digital content from unauthorized file-sharing. Producers must not only consider copyright protection, but also the effect on transaction costs from unauthorized file-sharing. That is, less supply caused by a higher price makes the transaction costs higher due to the difficulty for consumers to find a file they desire. We examine a criterion as to whether this situation makes a monopoly price higher or not.
ISSN:0165-1765
1873-7374
DOI:10.1016/j.econlet.2004.04.004