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Copyright and Generic Entry in Book Publishing

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  • Imke Reimers

Abstract

Taking works off copyright promotes their availability, but it also allows generic entry to dissipate producer surplus. This paper examines the effect of a copyright on the availability and price of books when incentives to create new works are not affected. Evaluating the welfare impact of the 1998 Copyright Term Extension Act, I find that a copyright significantly limits the availability of works, leading to a decrease in consumer surplus, which is significantly larger than any increases in profits to copyright holders. Without changing incentives to create new content, the copyright extension was economically inefficient.

Suggested Citation

  • Imke Reimers, 2019. "Copyright and Generic Entry in Book Publishing," American Economic Journal: Microeconomics, American Economic Association, vol. 11(3), pages 257-284, August.
    • Handle: RePEc:aea:aejmic:v:11:y:2019:i:3:p:257-84
    Note: DOI: 10.1257/mic.20170100
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Julia Cagé & Nicolas Hervé & Marie-Luce Viaud, 2020. "The Production of Information in an Online World," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 87(5), pages 2126-2164.
    2. Imke Reimers & Joel Waldfogel, 2021. "Digitization and Pre-purchase Information: The Causal and Welfare Impacts of Reviews and Crowd Ratings," American Economic Review, American Economic Association, vol. 111(6), pages 1944-1971, June.
    3. Julia Cage & Nicolas Hervé & Marie-Luce Viaud, 2017. "The Production of Information in an Online World: Is Copy Right?," Working Papers hal-03393171, HAL.
    4. repec:spo:wpmain:info:hdl:2441/3tcpvf3sd399op9sgtn8tq5bhd is not listed on IDEAS
    5. Alexander Cuntz & Matthias Sahli, 2024. "Intermediary liability and trade in follow-on innovation," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 48(1), pages 1-42, March.
    6. Julia Cagé & Nicolas Hervé & Marie-Luce Viaud, 2020. "The Production of Information in an Online World," Review of Economic Studies, Oxford University Press, vol. 87(5), pages 2126-2164.
    7. Christian Peukert & Margaritha Windisch, 2023. "The Economics of Copyright in the Digital Age," CESifo Working Paper Series 10687, CESifo.
    8. repec:hal:wpspec:info:hdl:2441/3tcpvf3sd399op9sgtn8tq5bhd is not listed on IDEAS
    9. Luis Aguiar & Zhizhong Chen, 2024. "Let that Sync in: The Effect of Music Reuse on Product Discovery," CESifo Working Paper Series 11249, CESifo.
    10. repec:hal:spmain:info:hdl:2441/52cps7rdns8iv8fr3f1kqm7iuv is not listed on IDEAS
    11. Cuntz, Alexander & Bergquist, Kyle, 2022. "Exclusive content and platform competition in Latin America," Information Economics and Policy, Elsevier, vol. 60(C).
    12. Herz, Benedikt & Mejer, Malwina, 2020. "The effect of design protection on price and price dispersion: Evidence from automotive spare parts," MPRA Paper 109645, University Library of Munich, Germany, revised 01 Sep 2021.
    13. Alexander Cuntz & Matthias Sahli, 2023. "Ars longa, vita brevis: The death of the creator and the impact on exhibitions and auction markets," WIPO Economic Research Working Papers 76, World Intellectual Property Organization - Economics and Statistics Division.
    14. Kaiser, Franziska & Cuntz, Alexander & Peukert, Christian, 2023. "Batman forever? The role of trademarks for reuse in the US comics industry," Research Policy, Elsevier, vol. 52(8).
    15. Herz, Benedikt & Mejer, Malwina, 2021. "The effect of design protection on price and price dispersion: Evidence from automotive spare parts," International Journal of Industrial Organization, Elsevier, vol. 79(C).
    16. repec:hal:spmain:info:hdl:2441/3tcpvf3sd399op9sgtn8tq5bhd is not listed on IDEAS
    17. Alexander Cuntz & Paul J. Heald & Matthias Sahli, 2023. "Digitization and Availability of Artworks in Online Museum Collections," WIPO Economic Research Working Papers 75, World Intellectual Property Organization - Economics and Statistics Division.
    18. repec:spo:wpecon:info:hdl:2441/3tcpvf3sd399op9sgtn8tq5bhd is not listed on IDEAS
    19. Kristelia García & James Hicks & Justin McCrary, 2020. "Copyright and Economic Viability: Evidence from the Music Industry," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 17(4), pages 696-721, December.
    20. Nicolas Lagios & Pierre-Guillaume Méon, 2023. "A Matter of Taste: The Negative Welfare Effect of Expert Judgments," Working Papers CEB 23-009, ULB -- Universite Libre de Bruxelles.
    21. Alexander Cuntz & Franziska Kaiser, 2020. "Batman forever? The economics of overlapping rights," WIPO Economic Research Working Papers 61, World Intellectual Property Organization - Economics and Statistics Division.

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    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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