The Welfare Implications of Unauthorized Reproduction of Intellectual Property in the Presence of Demand Network Externalities
Lisa N Takeyama
Journal of Industrial Economics, 1994, vol. 42, issue 2, pages 155-66
This paper finds that unauthorized reproduction of intellectual property in the presence of demand network externalities can not only induce greater firm profits relative to the case where there is no copying, it can lead to a Pareto improvement in social welfare. Ceteris paribus, when network externalities are present, firms have a greater incentive to expand output because marginal revenue is higher and/or they may wish to create preemptive installed bases. This paper suggests that unauthorized copying can be a relatively efficient means of achieving this by allowing the firm, in effect, to 'price discriminate' among different classes of consumers. Copyright 1994 by Blackwell Publishing Ltd.
References: Add references at CitEc
Citations View citations in EconPapers (68) Track citations by RSS feed
Downloads: (external link)
http://links.jstor.org/sici?sici=0022-1821%2819940 ... 0.CO%3B2-H&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:bla:jindec:v:42:y:1994:i:2:p:155-66
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0022-1821
Access Statistics for this article
Journal of Industrial Economics is currently edited by Pierre Regibeau, Yeon-Koo Che, Kenneth Corts, Thomas Hubbard, Patrick Legros and Frank Verboven
More articles in Journal of Industrial Economics from Wiley Blackwell
Series data maintained by Wiley-Blackwell Digital Licensing ().