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What Can We Learn from Empirical Studies About Piracy?

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  • Sylvain Dejean

Abstract

The purpose of this article is to make an assessment of the empirical literature dedicated to the consequences of piracy on the cultural industry. The diversity of data collected and methodologies used by empirical studies make it difficult to compare the literature results. On the one hand, some studies seem to have overestimated the impact of digital piracy which may be due, for example, to the use of Internet access as a proxy for piracy. On the other hand, the problem of finding a good instrument to avoid the endogeneity between files illegally downloaded and purchased goods, has probably led to an underestimation of the impact of piracy. As a result, the major finding of empirical works about piracy could be the change in the role of industry stakeholders as well as the way cultural goods are distributed and consumed. We also discuss the different evolutions of the music and the movie industries revenues since the appearance of the first P2P network. (JEL codes: L82, L86, K42) Copyright , Oxford University Press.

Suggested Citation

  • Sylvain Dejean, 2009. "What Can We Learn from Empirical Studies About Piracy?," CESifo Economic Studies, CESifo Group, vol. 55(2), pages 326-352, June.
    • Handle: RePEc:oup:cesifo:v:55:y:2009:i:2:p:326-352
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    File URL: http://hdl.handle.net/10.1093/cesifo/ifp006
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    Cited by:

    1. 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.
    2. J. McKenzie & W. D. Walls, "undated". "File Sharing and Film Revenues: An Empirical Analysis," Working Papers 2013-01, Department of Economics, University of Calgary.
    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. Hardy, Wojciech, 2021. "Displacement from piracy in the American comic book market," Information Economics and Policy, Elsevier, vol. 57(C).
    5. Romeu, Andrés & Martinez-Sanchez, Francisco, 2015. "Technological Development and Software Piracy," UMUFAE Economics Working Papers 43702, DIGITUM. Universidad de Murcia.
    6. Adermon, Adrian & Liang, Che-Yuan, 2014. "Piracy and music sales: The effects of an anti-piracy law," Journal of Economic Behavior & Organization, Elsevier, vol. 105(C), pages 90-106.
    7. JORDI McKENZIE, 2009. "Illegal Music Downloading And Its Impact On Legitimate Sales: Australian Empirical Evidence," Australian Economic Papers, Wiley Blackwell, vol. 48(4), pages 296-307, December.
    8. Javier López-Cuñat & Francisco Martínez-Sánchez, 2015. "Anti-piracy policy and quality differential in markets for information goods," European Journal of Law and Economics, Springer, vol. 39(2), pages 375-401, April.
    9. McKenzie, Jordi, 2017. "Graduated response policies to digital piracy: Do they increase box office revenues of movies?," Information Economics and Policy, Elsevier, vol. 38(C), pages 1-11.
    10. McKenzie Jordi & Walls W. David, 2016. "File Sharing and Film Revenues: Estimates of Sales Displacement at the Box Office," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(1), pages 25-57, January.
    11. Mandel Philipp & Süssmuth Bernd, 2012. "Determinants of Digital Piracy: A Re-examination of Results," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(4), pages 394-413, August.
    12. Lee, Jonathan F., 2018. "Purchase, pirate, publicize: Private-network music sharing and market album sales," Information Economics and Policy, Elsevier, vol. 42(C), pages 35-55.
    13. Martínez-Sánchez, Francisco & Romeu, Andrés, 2018. "Development and software piracy," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 12, pages 1-21.
    14. Wojciech Hardy, 2020. "Effects of piracy on the American comic book market and the role of digital formats," IBS Working Papers 01/2020, Instytut Badan Strukturalnych.
    15. Chang, Yang-Ming & Walter, Jason, 2015. "Digital piracy: Price-quality competition between legal firms and P2P network hosts," Information Economics and Policy, Elsevier, vol. 31(C), pages 22-32.
    16. 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).
    17. Martínez-Sánchez, Francisco, 2020. "Preventing commercial piracy when consumers are loss averse," Information Economics and Policy, Elsevier, vol. 53(C).
    18. Patrick Waelbroeck, 2013. "Digital music," Chapters, in: Ruth Towse & Christian Handke (ed.), Handbook on the Digital Creative Economy, chapter 34, pages 389-398, Edward Elgar Publishing.

    More about this item

    JEL classification:

    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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