2019 Fiscal Year Research-status Report
Piracy in the Music Industry: A Two-Sided Market Approach
| Project/Area Number |
19K01649
|
|---|
| Research Institution | Nagoya University |
|---|
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)
|
|---|
| Co-Investigator(Kenkyū-buntansha) |
マルシャレツ ダニエル 東京大学, 大学院経済学研究科(経済学部), 講師 (50747805)
|
|---|
| Project Period (FY) |
2019-04-01 – 2023-03-31
|
| Keywords | Two-sided markets / Piracy / Heterogeneous artists / Bargaining |
|---|
| Outline of Annual Research Achievements |
We study a two-sided market in which artists and consumers interact through platforms to trade tracks, and directly to trade concert tickets.
We compare copyright with piracy, the latter consisting of all tracks being available in an open platform.
We derived equilibrium results for copyright and piracy, and ran the welfare analysis.
Although most results make sense, we get that the platform offers a higher share of the total revenue to unknown artists to attract them under copyright, which contradicts the empirical evidence. This is a direct consequence of the Nash bargaining that we are using.
|
| Current Status of Research Progress |
Current Status of Research Progress
3: Progress in research has been slightly delayed.
Reason
First off, our teaching duties took both of us more time than expected.
Second, we underestimated the difficulty of correcting the result that the for-profit platform offers a larger share of the revenue to the unknown artist under copyright. We thought that a different type of bargaining would solve it but the result seems to be quite robust. This is pointing out either that there is a missing element in the model or that we need a different type of bargaining.
|
| Strategy for Future Research Activity |
We need to correct the result that the for-profit platform offers a larger share of the revenue to the unknown artist under copyright. To do so, we will try more types of bargaining or we will model a continuum of unknown artists instead, although some of our previous results and their interpretations will change in the latter case.
We have to run some numerical simulations. To do so, we need to make some assumptions about the distribution of parameters already in the model and show how aggregate results play out, like how much more revenue the famous artist generates or how much consumers expect the quality difference to be on average. This exercise will probably be more policy-relevant.
|
| Causes of Carryover |
Since the research is a bit delayed, it was not necessary yet to acquire the Matlab licenses. As we proceed with the research plan, the licenses will be required and probably one more computer.
Also, in the latest months it was not possible to travel for research purposes because of the coronavirus.
|
Research Products
(2 results)
