2018 Fiscal Year Annual Research Report
Do you want to steal my songs? The importance of diffusion in the music industry
| Project/Area Number |
17K13726
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| Research Institution | Nagoya University |
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Principal Investigator |
マルティン・ロドリゲス マリア 名古屋大学, 経済学研究科(国際), 特任講師 (70795012)
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| Project Period (FY) |
2017-04-01 – 2019-03-31
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| Keywords | Piracy / Price Discrimination / Popularity / Welfare |
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| Outline of Annual Research Achievements |
I build a model in which two artists that are heterogeneous in their degree of ex-ante popularity decide where to host their tracks, at a for-profit platform or at an open platform, to compare the outcomes with copyright and piracy:
1) Piracy equalizes the bargaining power of the famous and the unknown artists.
2) High-quality markets can appear because of piracy.
3) Piracy does not necessarily imply a price decrease.
4) Total welfare may decrease with piracy, but only if the unknown artist hosts her tracks at the for-profit platform with copyright. In this case, diffusion gains and inclusion of new customers due to piracy increase the total welfare, but the switching effect driven by the consumers who exchange high-quality copies by low-quality ones decreases the total welfare.
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Research Products
(4 results)
