Piracy in a two-sided software market

Alexander Rasch; Tobias Wenzel

doi:10.1016/j.jebo.2013.01.009

Piracy in a two-sided software market

Alexander Rasch, Tobias Wenzel

Department of Economics

Research output: Contribution to journal › Article › peer-review

45 Citations (SciVal)

Abstract

This paper studies the impact of software piracy in a two-sided-market setting. Software platforms attract developers and users to maximize their profits. The equilibrium price structure is affected by piracy: license fees to developers are higher with more software protection but the impact on user prices is ambiguous. A conflict between platforms and software developers over software protection may arise: whereas one side benefits from better protection, the other party loses out. Under platform compatibility, this conflict is no longer present.

Original language	English
Pages (from-to)	78-89
Journal	Journal of Economic Behavior and Organization
Volume	88
DOIs	https://doi.org/10.1016/j.jebo.2013.01.009
Publication status	Published - Apr 2013

Keywords

Developer
Piracy
Platform
Software
Two-sided market

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10.1016/j.jebo.2013.01.009

Cite this

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AB - This paper studies the impact of software piracy in a two-sided-market setting. Software platforms attract developers and users to maximize their profits. The equilibrium price structure is affected by piracy: license fees to developers are higher with more software protection but the impact on user prices is ambiguous. A conflict between platforms and software developers over software protection may arise: whereas one side benefits from better protection, the other party loses out. Under platform compatibility, this conflict is no longer present.

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KW - Platform

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KW - Two-sided market

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Piracy in a two-sided software market

Abstract

Keywords

Access to Document

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