Preventing commercial piracy when consumers are loss averse

Martínez Sánchez, Francisco

Publication:
Preventing commercial piracy when consumers are loss averse

dc.contributor.author	Martínez Sánchez, Francisco
dc.contributor.department	Métodos Cuantitativos para la Economía y la Empresa
dc.date.accessioned	2024-01-12T09:00:57Z
dc.date.available	2024-01-12T09:00:57Z
dc.date.issued	2020-12
dc.description	© 2020. This document is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/ This document is the submitted version of a published work that appeared in final form in Information Economics and Policy	es
dc.description.abstract	I analyze how the loss aversion of consumers affects the strategies of the government and the incumbent for preventing commercial piracy. To that end, I develop a sequential duopoly model of vertical product differentiation with price competition in which con- sumers have a reference-dependent utility. Regardless of the quality of the illegal copy, conventional models that do not take into account the loss aversion of consumers overes- timate the government’s effort to deter piracy but underestimate the incumbent’s effort. Contrary to conventional wisdom, I find that blocking the entry of a pirate by the govern- ment can provide more welfare than accommodating it. However, the government will not block it because socially it is better to encourage the incumbent to establish a price low enough to deter the pirate from entering.	es
dc.format	application/pdf	es
dc.format.extent	28	es
dc.identifier.citation	Information Economics and Policy Volume 53, December 2020, 100896
dc.identifier.doi	https://doi.org/10.1016/j.infoecopol.2020.100896
dc.identifier.issn	Print: 0167-6245
dc.identifier.issn	Electronic: 1873-5975
dc.identifier.uri	http://hdl.handle.net/10201/137243
dc.language	eng	es
dc.publisher	Elsevier	es
dc.relation	Crecimiento y Ciclos Economicos: Nuevos Retos Tras La Gran Recesion. Entidad: Ministerio De Economía Y Competitividad Ámbito Del Proyecto: Nacional Comienzo: 30/12/2016 , Fin: 31/12/2020 ECO2016-76178-P	es
dc.relation.publisherversion	S0167624520301402	es
dc.rights	info:eu-repo/semantics/openAccess	es
dc.rights	Attribution-NonCommercial-NoDerivatives 4.0 Internacional	*
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/4.0/	*
dc.subject	Reference-dependent utility	es
dc.subject	Loss aversion	es
dc.subject	Commercial piracy	es
dc.subject	Government	es
dc.subject	Incumbent	es
dc.subject	Pirate	es
dc.title	Preventing commercial piracy when consumers are loss averse	es
dc.type	info:eu-repo/semantics/article	es
dspace.entity.type	Publication	es