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Network Externality and Software Piracy

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  • Sougata Poddar

Abstract

The pervasiveness of the illegal copying of software is a worldwide phenomenon. Software piracy implies a huge loss of potential customers of original software buyers, which directly translates into revenue losses for the software industry. Given this, conventional wisdom would suggest the need for the legal software firms and governments to take a harsh approach on piracy of software. Interestingly, there is a trend of literature, which establishes that it is actually profitable for the original software developer to allow limited piracy in the presence of network externality.

Suggested Citation

  • Sougata Poddar, 2002. "Network Externality and Software Piracy," WIDER Working Paper Series DP2002-115, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2002-115
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    File URL: https://www.wider.unu.edu/sites/default/files/dp2002-115.pdf
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    References listed on IDEAS

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    Cited by:

    1. Gayer, Amit & Shy, Oz, 2003. "Copyright protection and hardware taxation," Information Economics and Policy, Elsevier, vol. 15(4), pages 467-483, December.

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