Counterfeiting and Negative Consumption Externalities – A Closer Look
Jonas Häckner () and
Astri Muren ()
Journal of Industry, Competition and Trade, 2015, vol. 15, issue 4, 337-350
We extend the work of Grossman and Shapiro (J Econ 103:79–100, 1988 ) on consumption externalities in prestige goods markets, and model a general aversion towards large levels of output interacting with an aversion towards copies in particular. These externalities play the role of protecting the market share of the producer of originals. We show that the well-established result under positive network externalities, that piracy is an equilibrium, extends to the case of negative consumption externalities. When externalities are pronounced enforcement should be strict, while in markets subject to moderate externalities there are no strong arguments in favor of a strict policy. Copyright Springer Science+Business Media New York 2015
Keywords: L13; D62; Consumption externalities; Counterfeiting; Product differentiation (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:jincot:v:15:y:2015:i:4:p:337-350
Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/10842/PS2
Access Statistics for this article
Journal of Industry, Competition and Trade is currently edited by Karl Aiginger, Marcel Canoy and Michael Peneder
More articles in Journal of Industry, Competition and Trade from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().