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Sougata Poddar and Yuanzhu Lu
''Impact of Network Externality on End-User Piracy: Revisited''
( 2017, Vol. 37 No.3 )
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.
Keywords: Digital Piracy, Network Externality, Consumer taste, Product quality
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
D4 - Market Structure and Pricing: General
Manuscript Received : Jan 04 2017 Manuscript Accepted : Jul 02 2017

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