Eliminating digital rights management from the E-book market

Jin-Hyuk Kim and Tin Cheuk Leung

Information Economics and Policy, 2021, vol. 57, issue C

Abstract: We examine the impact of removing Digital Rights Management (DRM) from electronic book devices. We derive a Bayesian hierarchical logit model based on the consumer’s utility maximization problem and estimate the model using data from a choice-based survey. We then simulate the counterfactual market outcomes when DRM is removed; on average, the consumer surplus increases nontrivially holding everything else constant. However, the gain in consumer surplus is diminished when we re-calibrate e-book device prices. Further, if there is a negative shock to content supply, then the consumer surplus could in fact decrease after DRM removal.

Keywords: Ebook; Demand system; Platform; DRM (search for similar items in EconPapers)
JEL-codes: L63 L82 M21 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:iepoli:v:57:y:2021:i:c:s0167624521000238

DOI: 10.1016/j.infoecopol.2021.100935

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