Copy-protection policies and profitability |
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Authors: | Hiroshi Kinokuni |
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Affiliation: | Faculty of Economics, Ritsumeikan University, 1-1-1 Nojihigashi, Kusatsu, Shiga 525-8577, Japan |
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Abstract: | This paper examines the publisher's optimal copy-protection policies. Even if copying is more cost-efficient than producing an original, private copying harms the publisher for two reasons. First, the copy users’ contribution to the original's price is too small, and second, there is a time lag between providing the original and distributing copies. If and only if both production costs of copies and institutional costs of the distribution of copies are sufficiently small; does controlling the number of copies benefit the publisher. However, the publisher's optimal number of copies is too low from a social welfare perspective. |
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Keywords: | Information goods Private copying Copy-protection Appropriability |
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