Trading higher software piracy for higher profits: The case of phantom piracy

Management Science

Volumn 56, Issue 11, 2010, Pages 1946-1962

  Gopal, Ram D ^a   Gupta, Alok ^b  

^a UNIVERSITY OF CONNECTICUT   (United States)

^b UNIVERSITY OF MINNESOTA   (United States)

Author keywords

Bundling; Copyright; Phantom piracy; Software piracy

Indexed keywords

ANNUAL REVENUE; BUNDLING; CONSUMER SURPLUS; COPYRIGHT LAW; DEMAND POOLING; ECONOMIC STRATEGY; EXTENSIVE SIMULATIONS; INFORMATION GOODS; PHANTOM PIRACY; PRICE DISCOUNT; PRICE DISCRIMINATION; SOFTWARE INDUSTRY; SOFTWARE PIRACY; TRADE OFF; WIN-WIN;

COST BENEFIT ANALYSIS; COSTS; EARNINGS; ECONOMICS; PROFITABILITY; SOFTWARE ENGINEERING;

CRIME;

EID: 78649739226     PISSN: 00251909     EISSN: 15265501     Source Type: Journal    
DOI: 10.1287/mnsc.1100.1221     Document Type: Article

References (31)

1. Antonoff, M. 1987. The decline of copy protection. Personal Comput. 11(5) 115.
2. Asvanund, A., K. Clay, R. Krishnan, M. Smith. 2004. An empirical analysis of network externalities in peer-to-peer music-sharing networks. Inform. Systems Res. 15(2) 155-174.
3. Bakos, Y., E. Brynjolfsson. 1999. Bundling information goods: Pricing, profits, and efficiency. Management Sci. 45(12) 1613-1630.
4. Bakos, Y., E. Brynjolfsson. 2000. Bundling and competition on the Internet. Marketing Sci. 19(1) 63-82.
5. Bakos, J. Y., E. Brynjolfsson, D. Lichtman. 1999. Shared information goods. J. Law Econom. 42(1) 117-155.
6. Belleflamme, P. 2003. Pricing information goods in the presence of copying. W. J. Gordon, R. Watt, eds. The Economics of Copyright: Developments in Research and Analysis. Edward Elgar Publishing, Northampton, MA, 26-54.
7. Bhattacharjee, S., R. D. Gopal, K. Lertwachara, J. Marsden. 2006a. Consumer search and retailer strategies in the presence of online music sharing. J. Management Inform. Systems 23(1) 129-159.
8. Bhattacharjee, S., R. D. Gopal, K. Lertwachara, J. Marsden. 2006b. Impact of legal threats on individual behavior: An analysis of music industry actions and online music sharing. J. Law Econom. 49(1) 91-114.
9. Bhattacharjee, S., R. D. Gopal, R. Sankaranarayanan, J. Marsden. 2009. Re-tuning the music industry: Can they re-attain business resonance? Comm. ACM. 52(6) 136-140.
10. Blumstein, A., J. Cohen, D. Nagin. 1978. Introduction. Deterrence and Incapacitation: Estimating the Effects of Criminal Sanctions on Crime Rates. National Academy of Sciences, Washington, DC.
11. Buchanan, J. M. 1965. An economic theory of clubs. Economica 32(125) 1-14.
12. Cheng, H. K., R. R. Sims, H. Teegen. 1997. To purchase or to pirate software: An empirical study. J. Management Inform. Systems 13(4) 49-60.
13. Chiang, E., D. Assane. 2002. Software copyright infringement among college students. Appl. Econom. 34(2) 157-166.
14. Conner, K. R., R. P. Rumelt. 1991. Software piracy: An analysis of protection strategies. Management Sci. 37(2) 125-139.
15. Gayer, A., O. Shy. 2003. Internet and peer-to-peer distributions in markets for digital products. Econom. Lett. 81(2) 51-57.
16. Gilbert, R. J., M. L. Katz. 2001. An economist's guide to U.S. v. Microsoft. J. Econom. Perspect. 15(2) 25-44.
17. Gopal, R. D., G. L. Sanders. 1997. An examination of preventive and deterrent controls for software piracy. J. Management Inform. Systems 13(4) 29-47.
18. Gopal, R. D., G. L. Sanders. 1998. International software piracy: Analysis of key issues and impacts. Inform. Systems Res. 9(4) 380-397.
19. Gopal, R. D., G. L. Sanders. 2000. Global software piracy: You can't get blood out of a turnip. Comm. ACM 43(9) 82-89.
20. Gopal, R. D., S. Bhattacharjee, G. L. Sanders. 2006. Do artists benefit from online music sharing? J. Bus. 79(3) 1503-1534.
21. Hinduja, S. 2003. Trends and patterns among online software pirates. Ethics Inform. Tech. 5(1) 49-61.
22. Im, J. H., P. D. Van Epps. 1991. Software piracy and software security in business schools: An ethical perspective. ACM SIGMIS Database 22(3) 15-21.
23. Malhotra, Y. 1994. Controlling copyright infringements of intellectual property: The case of computer software-Part two. J. Systems Management 45(7) 12-17.
24. Marshall, A. 2007. Causes, effects and solutions of piracy in the computer software market. Rev. Econom. Res. Copyright Issues 4(1) 63-86.
25. Myles, G., S. Nusser. 2006. Content protection for games. IBM Systems J. 45(1) 119-143.
26. Olsen, F. 1998. Software execs state case for Microsoft antitrust suit. Government Comput. News (August 3), http://www.gcn .com/print/17-20/33331-1. html.
27. Peitz, M., P. Waelbroeck. 2006. Piracy of digital products: A critical review of the theoretical literature. Inform. Econom. Policy 18(4) 449-476.
28. Schonwald, J. 2003. Software piracy dips 23% in U.S. ClickZ (June 4), http://www.clickz.com/clickz/stats/1692405/software-piracy -dips-23-us.
29. Sundararajan, A. 2004. Managing digital piracy: Pricing and protection. Inform. Systems Res. 15(3) 287-308.
30. Takeyama, L. N. 1994. The welfare implications of unauthorized reproduction of intellectual property in the presence of network externalities. J. Indust. Econom. 42(2) 155-166.
31. Varian, H. R. 2000. Buying, sharing and renting information goods. J. Indust. Econom. 48(4) 473-488.