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An Experimental Understanding of Transaction Utility in Piracy

Author

Listed:
  • Basu, Paulomi

    (Jadavpur University, India)

  • Banerjee , Tanmoyee

    (Jadavpur University, India)

  • Mitra, Santanu

    (Women’s Polytechnic, India)

Abstract

The present paper conducts a laboratory experiment with a sample of 209 students from Jadavpur University, Kolkata, India, within age group of 18–23 to study the prevalence of transaction utility in product piracy decision of the consumers. The experiment with four different treatments, treating price of original good as reference price for potential pirates uses standard descriptive statistics and logistic regression with clustered standard error at individual level to show that transaction utility is the statistically significant factor affecting the likelihood of piracy. Further, males and students belonging to Humanities are more inclined to product piracy.

Suggested Citation

  • Basu, Paulomi & Banerjee , Tanmoyee & Mitra, Santanu, 2022. "An Experimental Understanding of Transaction Utility in Piracy," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 47(4), pages 123-141, December.
    • Handle: RePEc:ris:jecdev:0006
    as

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    References listed on IDEAS

    as
    1. Cremer, Helmuth & Pestieau, Pierre, 2009. "Piracy prevention and the pricing of information goods," Information Economics and Policy, Elsevier, vol. 21(1), pages 34-42, February.
    2. Anna Dodonova & Yuri Khoroshilov, 2004. "Anchoring and transaction utility: evidence from on-line auctions," Applied Economics Letters, Taylor & Francis Journals, vol. 11(5), pages 307-310.
    3. Chiang, Eric P. & Assane, Djeto, 2008. "Music piracy among students on the university campus: Do males and females react differently?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(4), pages 1371-1380, August.
    4. Ciprian-Marcel Pop & Andreea–Ioana Romonti-Maniu & Monica-Maria Zaharie, 2017. "Opportunistic Consumer Behaviour in the Context of Digital Piracy," MIC 2017: Managing the Global Economy; Proceedings of the Joint International Conference, Monastier di Treviso, Italy, 24–27 May 2017,, University of Primorska Press.
    5. Dilmperi, Athina & King, Tamira & Dennis, Charles, 2011. "Pirates of the web: The curse of illegal downloading," Journal of Retailing and Consumer Services, Elsevier, vol. 18(2), pages 132-140.
    6. Borja, Karla & Dieringer, Suzanne, 2016. "Streaming or stealing? The complementary features between music streaming and music piracy," Journal of Retailing and Consumer Services, Elsevier, vol. 32(C), pages 86-95.
    7. M. Alvisi & E. Argentesi & E. Carbonara, 2002. "Piracy and Quality Choice in Monopolistic Markets," Working Papers 436, Dipartimento Scienze Economiche, Universita' di Bologna.
    8. Paulomi Basu & Tanmoyee Banerjee, 2018. "A Theoretical Analysis Of Product Versioning In The Context Of Commercial Piracy," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 63(219), pages 115-136, October –.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Experimental Economics; Behavioural Economics; Transaction utility; Piracy; Consumer Behaviour;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • 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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