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Copyright Infringement, Product Quality and Producer's Profit
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Dyuti Banerjee
Published/Copyright:
December 31, 2007
Abstract
This paper uses a strategic entry-deterrence framework to study the relationship between copying cost, and a monopolist’s profit and product quality. The potential entrant is a fake-producer producing and selling identical copies of the monopolist’s product. The monopolist’s subgame perfect equilibrium quality and profit is either unaffected or positively affected by changes in the copying cost. Tariffs on copying devices may be an effective copyright right protection instrument. Though an increase in tariff increases the product quality and monopolist’s profit, its welfare effects are ambiguous.
Published Online: 2007-12-31
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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Articles in the same Issue
- Article
- New Directions in Copyright Law and Economics
- Evaluating the Demsetzian Trend in Copyright Law
- What Can the Economics of Intellectual Property Learn from the Economics of Insurance?
- Theory of Deterrence and Individual Behavior. Can Lawsuits Control File Sharing on the Internet?
- Copyright Doctrines, Abstraction and Court Error
- The Singer or the Song? Developments in Performers' Rights from the Perspective of a Cultural Economist
- Property, Liability and Market Power: The Antitrust Side of Copyright
- Copyright Infringement, Product Quality and Producer's Profit
