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[FYI] (Fwd) Copyright piracy enforcement: econ paper




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Date sent:      	Fri, 13 Jul 2001 12:59:38 -0500
Send reply to:  	Law & Policy of Computer Communications
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From:           	Aimee Farr <aimee.farr@POBOX.COM>
Subject:        	Copyright piracy enforcement: econ paper
To:             	CYBERIA-L@LISTSERV.AOL.COM

Check out the last sentence of the abstract. *ponder*

~Aimee

-------------------------
>From New Economics Papers:
-------------------------
Does Copyright Enforcement Encourage Piracy?

   Rick Harbaugh (Claremont McKenna College) ; Rahul Khemka
     (Georgetown University)


Abstract: Copyright enforcement is often assumed to discourage illegal
  copying. We show that enforcement targeted at high-value buyers
  raises copyright holder profits but increases piracy relative to no
  enforcement. By giving the copyright holder a captive market,
  targeted enforcement causes the copyright holder to raise prices
  rather than compete with pirated versions, thereby encouraging
  piracy among low-value buyers. More extensive enforcement broadens
  the copyright holder's captive market, leading to lower prices and
  higher sales that can increase both profits and consumer surplus.
  The standard tradeoff between incentives to generate intellectual
  property and costs of monopoly power is therefore avoided. We
  conclude that either no enforcement or relatively extensive
  enforcement is the best policy against internet piracy.

Downloads:
  http://econ.claremontmckenna.edu/papers/2000-14.pdf (PDF)


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