How a Luxury Monopolist Might Benefit from a Stringent Counterfeit Monitoring Regime

Jen-Te Yao
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Jen-Te Yao: Department of Economics, Aletheia University, Taiwan

International Journal of Business and Economics, 2005, vol. 4, issue 3, 177-192

Abstract: Most studies in the intellectual property rights literature claim that the presence of counterfeit products hurts monopolists. This paper shows that this is not always true in a market with Veblen effects where a counterfeit monitoring regime is enforced. This paper finds an effect due to intellectual property rights enforcement that may be strong enough to produce a selling price that is higher than the price chosen without counterfeiting. Consequently, the monopolist may obtain greater profits in the presence of counterfeiting than in its absence.

Keywords: intellectual property rights; counterfeiting; Veblen effects (search for similar items in EconPapers)
JEL-codes: D42 K42 L43 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:ijb:journl:v:4:y:2005:i:3:p:177-192

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