TITLE:
Learning by Copying a Piratable Good
AUTHORS:
Francisco Martínez-Sánchez
KEYWORDS:
Consumers, DRM, Learning by Copying, Piracy
JOURNAL NAME:
Theoretical Economics Letters,
Vol.4 No.9,
December
1,
2014
ABSTRACT: In this
paper, we analyze the behavior of a multiproduct monopolist, a duopolist and
consumers who are able to learn by copying. We show that the DRM systems
implemented by the digital industry have adverse consequences, because they
hinder the use of original goods and provide consumers with an incentive for
copying. Finally, we show that the Cournot effect may fail, unlike previous
studies.