A note on a counterfeiting model with fines pocketed by the genuine firm

Andrea Di Liddo (andrea.diliddo@unifg.it)

Working Papers - Dipartimento di Economia - Università degli Studi di Foggia from Dipartimento Economia, Universita' di Foggia

Abstract: A monopolist sells a luxury genuine product protected by conventional intellectual property rights laws (IPR). However, a competitive fringe of counterfeiters can illegally copy and sell the product without the permission of the monopolist. Fines are imposed on counterfeiters and pocketed by the genuine firm. It is shown that when the genuine producer can shape the amount of sanctions, he will not necessarily seek to eliminate all counterfeiters.

Keywords: Counterfeiting; Fines; Intellectual property rights (search for similar items in EconPapers)
JEL-codes: D21 D23 D42 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2015-05
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