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Piracy in a two-sided software market

Alexander Rasch and Tobias Wenzel

Journal of Economic Behavior & Organization, 2013, vol. 88, issue C, 78-89

Abstract: This paper studies the impact of software piracy in a two-sided-market setting. Software platforms attract developers and users to maximize their profits. The equilibrium price structure is affected by piracy: license fees to developers are higher with more software protection but the impact on user prices is ambiguous. A conflict between platforms and software developers over software protection may arise: whereas one side benefits from better protection, the other party loses out. Under platform compatibility, this conflict is no longer present.

Keywords: Developer; Piracy; Platform; Software; Two-sided market (search for similar items in EconPapers)
JEL-codes: L11 L86 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:88:y:2013:i:c:p:78-89

DOI: 10.1016/j.jebo.2013.01.009

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