IDEAS home Printed from https://ideas.repec.org/a/inm/orijoc/v29y2017i1p92-107.html
   My bibliography  Save this article

Combating Prerelease Piracy: Modeling the Effects of Antipiracy Measures in P2P Networks

Author

Listed:
  • Il-Horn Hann

    (Robert H. Smith School of Business, University of Maryland, College Park, Maryland 20742)

  • JooHee Oh

    (Rotterdam School of Management, Erasmus University Rotterdam, Rotterdam, Netherlands)

Abstract

The short period right after the release of a song is typically associated with extensive publicity and the highest sales. However, these songs are often found well before the official release date on peer-to-peer (P2P) networks. Not surprisingly, the industry considers this so-called “prerelease” piracy to be extremely damaging to the potential sales of a song. In this paper, we analyze the effect of antipiracy measures on the propagation of unauthorized content in P2P networks. For this purpose, we develop a model that describes the dynamics of demand and supply of piracy from the early stages. Using a unique data set, we quantify the impact of antipiracy measures; specifically, we analyze two antipiracy measures: the reduction of file supply and the reduction of file demand . We find that the impact of a demand reduction on demand is greater than the impact of a supply reduction on supply. From a policy point of view, our results suggest that taking antipiracy measures early on is important. In addition, and potentially more controversial, our results provide support for the notion that to reduce piracy, punishing end users is as effective as controlling the supply of unauthorized music files.

Suggested Citation

  • Il-Horn Hann & JooHee Oh, 2017. "Combating Prerelease Piracy: Modeling the Effects of Antipiracy Measures in P2P Networks," INFORMS Journal on Computing, INFORMS, vol. 29(1), pages 92-107, February.
    • Handle: RePEc:inm:orijoc:v:29:y:2017:i:1:p:92-107
    DOI: 10.1287/ijoc.2016.0719
    as

    Download full text from publisher

    File URL: https://doi.org/10.1287/ijoc.2016.0719
    Download Restriction: no
    File URL: https://libkey.io/10.1287/ijoc.2016.0719?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
    ---><---

    References listed on IDEAS

    as
    1. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
    2. Waldfogel, Joel, 2009. "Lost on the web: Does web distribution stimulate or depress television viewing?," Information Economics and Policy, Elsevier, vol. 21(2), pages 158-168, June.
    3. Creel, Michael & Farell, Montserrat, 1996. "SUR estimation of multiple time-series models with heteroscedasticity and serial correlation of unknown form," Economics Letters, Elsevier, vol. 53(3), pages 239-245, December.
    4. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    5. Brett Danaher & Samita Dhanasobhon & Michael D. Smith & Rahul Telang, 2010. "Converting Pirates Without Cannibalizing Purchasers: The Impact of Digital Distribution on Physical Sales and Internet Piracy," Marketing Science, INFORMS, vol. 29(6), pages 1138-1151, 11-12.
    6. Sunil Kumar & Jayashankar M. Swaminathan, 2003. "Diffusion of Innovations Under Supply Constraints," Operations Research, INFORMS, vol. 51(6), pages 866-879, December.
    7. Sudip Bhattacharjee & Ram D. Gopal & Kaveepan Lertwachara & James R. Marsden & Rahul Telang, 2007. "The Effect of Digital Sharing Technologies on Music Markets: A Survival Analysis of Albums on Ranking Charts," Management Science, INFORMS, vol. 53(9), pages 1359-1374, September.
    8. Mortimer, Julie Holland & Nosko, Chris & Sorensen, Alan, 2012. "Supply responses to digital distribution: Recorded music and live performances," Information Economics and Policy, Elsevier, vol. 24(1), pages 3-14.
    9. Felix Oberholzer-Gee & Koleman Strumpf, 2007. "The Effect of File Sharing on Record Sales: An Empirical Analysis," Journal of Political Economy, University of Chicago Press, vol. 115(1), pages 1-42.
    10. Jacob Goldenberg & Oded Lowengart & Daniel Shapira, 2009. "Zooming In: Self-Emergence of Movements in New Product Growth," Marketing Science, INFORMS, vol. 28(2), pages 274-292, 03-04.
    11. Dipak Jain & Vijay Mahajan & Eitan Muller, 1991. "Innovation Diffusion in the Presence of Supply Restrictions," Marketing Science, INFORMS, vol. 10(1), pages 83-90.
    12. Jeffrey M. Wooldridge, 2001. "Applications of Generalized Method of Moments Estimation," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 87-100, Fall.
    13. Teck-Hua Ho & Sergei Savin & Christian Terwiesch, 2002. "Managing Demand and Sales Dynamics in New Product Diffusion Under Supply Constraint," Management Science, INFORMS, vol. 48(2), pages 187-206, February.
    14. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-890, July.
    15. Brett Danaher & Michael D. Smith & Rahul Telang & Siwen Chen, 2014. "The Effect of Graduated Response Anti-Piracy Laws on Music Sales: Evidence from an Event Study in France," Journal of Industrial Economics, Wiley Blackwell, vol. 62(3), pages 541-553, September.
    16. Wenjing Shen & Izak Duenyas & Roman Kapuscinski, 2011. "New Product Diffusion Decisions Under Supply Constraints," Management Science, INFORMS, vol. 57(10), pages 1802-1810, October.
    17. Xiaoquan (Michael) Zhang & Feng Zhu, 2011. "Group Size and Incentives to Contribute: A Natural Experiment at Chinese Wikipedia," American Economic Review, American Economic Association, vol. 101(4), pages 1601-1615, June.
    18. Kartik Hosanagar & Peng Han & Yong Tan, 2010. "Diffusion Models for Peer-to-Peer (P2P) Media Distribution: On the Impact of Decentralized, Constrained Supply," Information Systems Research, INFORMS, vol. 21(2), pages 271-287, June.
    19. J. Miguel Villas-Boas & Russell S. Winer, 1999. "Endogeneity in Brand Choice Models," Management Science, INFORMS, vol. 45(10), pages 1324-1338, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Can Sun & Yonghua Ji & Xianjun Geng, 2023. "Which Enemy to Dance with? A New Role of Software Piracy in Influencing Antipiracy Strategies," Information Systems Research, INFORMS, vol. 34(4), pages 1711-1727, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brett Danaher & Michael D. Smith & Rahul Telang, 2014. "Piracy and Copyright Enforcement Mechanisms," Innovation Policy and the Economy, University of Chicago Press, vol. 14(1), pages 25-61.
    2. Tyrowicz, Joanna & Krawczyk, Michal & Hardy, Wojciech, 2020. "Friends or foes? A meta-analysis of the relationship between “online piracy” and the sales of cultural goods," Information Economics and Policy, Elsevier, vol. 53(C).
    3. Wojciech Hardy & Michal Krawczyk & Joanna Tyrowicz, 2015. "Friends or foes? A meta-analysis of the link between "online piracy" and sales of cultural goods," Working Papers 2015-23, Faculty of Economic Sciences, University of Warsaw.
    4. Wenjing Shen & Izak Duenyas & Roman Kapuscinski, 2014. "Optimal Pricing, Production, and Inventory for New Product Diffusion Under Supply Constraints," Manufacturing & Service Operations Management, INFORMS, vol. 16(1), pages 28-45, February.
    5. Bin Hu & Zhankun Sun, 2022. "Managing Self-Replicating Innovative Goods," Management Science, INFORMS, vol. 68(1), pages 399-419, January.
    6. A. Negahban & J.S. Smith, 2016. "The effect of supply and demand uncertainties on the optimal production and sales plans for new products," International Journal of Production Research, Taylor & Francis Journals, vol. 54(13), pages 3852-3869, July.
    7. Emmi Martikainen, 2014. "Does file-sharing reduce DVD sales?," Netnomics, Springer, vol. 15(1), pages 9-31, July.
    8. Christophe Bellégo & Romain De Nijs, 2020. "The Unintended Consequences of Antipiracy Laws on Markets with Asymmetric Piracy: The Case of the French Movie Industry," Information Systems Research, INFORMS, vol. 31(4), pages 1064-1086, December.
    9. Kartik Hosanagar & Peng Han & Yong Tan, 2010. "Diffusion Models for Peer-to-Peer (P2P) Media Distribution: On the Impact of Decentralized, Constrained Supply," Information Systems Research, INFORMS, vol. 21(2), pages 271-287, June.
    10. Amini, Mehdi & Wakolbinger, Tina & Racer, Michael & Nejad, Mohammad G., 2012. "Alternative supply chain production–sales policies for new product diffusion: An agent-based modeling and simulation approach," European Journal of Operational Research, Elsevier, vol. 216(2), pages 301-311.
    11. Schwarz, Justus Arne & Tan, Barış, 2021. "Optimal sales and production rollover strategies under capacity constraints," European Journal of Operational Research, Elsevier, vol. 294(2), pages 507-524.
    12. Ashkan Negahban & Jeffrey S. Smith, 2018. "A joint analysis of production and seeding strategies for new products: an agent-based simulation approach," Annals of Operations Research, Springer, vol. 268(1), pages 41-62, September.
    13. Eryn Juan He & Joel Goh, 2022. "Profit or Growth? Dynamic Order Allocation in a Hybrid Workforce," Management Science, INFORMS, vol. 68(8), pages 5891-5906, August.
    14. Ivan Diaz-Rainey & Dionisia Tzavara, 2011. "Financing Renewable Energy through Household Adoption of Green Electricity Tariffs: A Diffusion Model of an Induced Environmental Market," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2011-03, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    15. Bayrak, Busra & Guray, Busra & Uzunlar, Nilsu & Nadar, Emre, 2024. "Diffusion control in closed-loop supply chains: Successive product generations," International Journal of Production Economics, Elsevier, vol. 268(C).
    16. Apurva Jain & Swapnil Rayal, 2023. "Managing medical equipment capacity with early spread of infection in a region," Production and Operations Management, Production and Operations Management Society, vol. 32(5), pages 1415-1432, May.
    17. Burmester, Alexa B. & Eggers, Felix & Clement, Michel & Prostka, Tim, 2016. "Accepting or fighting unlicensed usage: Can firms reduce unlicensed usage by optimizing their timing and pricing strategies?," International Journal of Research in Marketing, Elsevier, vol. 33(2), pages 343-356.
    18. Yan, Xiaoming & Liu, Ke, 2009. "Optimal control problems for a new product with word-of-mouth," International Journal of Production Economics, Elsevier, vol. 119(2), pages 402-414, June.
    19. Laurina Zhang, 2018. "Intellectual Property Strategy and the Long Tail: Evidence from the Recorded Music Industry," Management Science, INFORMS, vol. 64(1), pages 24-42, January.
    20. Vahideh Manshadi & Sidhant Misra & Scott Rodilitz, 2020. "Diffusion in Random Networks: Impact of Degree Distribution," Operations Research, INFORMS, vol. 68(6), pages 1722-1741, November.

    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:inm:orijoc:v:29:y:2017:i:1:p:92-107. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.