EconPapers    
Economics at your fingertips  
 

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

Abstract: 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)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1007/s10842-015-0196-6 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

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

DOI: 10.1007/s10842-015-0196-6

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 ().

 
Page updated 2021-06-08
Handle: RePEc:kap:jincot:v:15:y:2015:i:4:p:337-350