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Piracy and Competition
Paul Belleflamme
Pierre M. Picard
出版
SSRN
, 2015
URL
http://books.google.com.hk/books?id=JtvczwEACAAJ&hl=&source=gbs_api
註釋
The effects of (private, small-scale) piracy on the pricing behavior of producers of information goods are studied within a unified model of vertical differentiation. Although information goods are assumed to be perfectly differentiated, demands are interdependent because the copying technology exhibits increasing returns to scale. We characterize the Bertrand-Nash equilibria in a duopoly. Comparing equilibrium prices to the prices set by a multiproduct monopolist, we show that competition drives prices up and may lead to price dispersion. Competition reduces total surplus in the short run but provides higher incentives to create in the long run.