IDEAS home Printed from https://ideas.repec.org/a/bpj/revmkt/v16y2019i1p109-132n3.html
   My bibliography  Save this article

Transaction Utility of End-User Pirates – An Analysis

Author

Listed:
  • Basu Paulomi
  • Banerjee Tanmoyee

    (Department of Economics, Jadavpur University, Kolkata, India)

Abstract

The present study hypothesized the concept of transaction utility that consumers receive from end-user piracy and assumes that it is positively associated with the difference between the price of original good and cost of copying the pirated product. We assume two groups of consumers – one enjoying transaction utility from piracy and the other not enjoying the same. The results show that a monopolist producing information-goods will adopt a low-price low-quality strategy in presence of transaction utility. An increase in the quality of the pirated product will also induce the firm to continue with the low-price–low-quality strategy. However, an increase in the proportion of the consumers not receiving transaction utility from piracy will increase the price and quality of the original good. In addition, with an increase in the average and marginal willingness-to-pay parameter of the consumers, the price, quality and profit of the original good will increase. The expected piracy rate is observed to be decreasing in transaction utility parameter when the upper boundary of willingness-to-pay parameter of the consumer is below a critical level.

Suggested Citation

  • Basu Paulomi & Banerjee Tanmoyee, 2019. "Transaction Utility of End-User Pirates – An Analysis," Review of Marketing Science, De Gruyter, vol. 16(1), pages 109-132, June.
    • Handle: RePEc:bpj:revmkt:v:16:y:2019:i:1:p:109-132:n:3
    DOI: 10.1515/roms-2018-0042
    as

    Download full text from publisher

    File URL: https://www.degruyter.com/view/j/roms.2019.16.issue-1/roms-2018-0042/roms-2018-0042.xml?format=INT
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/roms-2018-0042?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    More about this item

    Keywords

    transaction utility; behavioural economics; information good; consumer behaviour; end-user piracy; piracy rate;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:revmkt:v:16:y:2019:i:1:p:109-132:n:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.