The impact of piracy on prominent and non-prominent software developers

Abstract

This paper studies the impact of software piracy on prominent and non-prominent software developers in markets based on a two-sided platform business. User behavior is imperfect and, when adopting a platform, users only take prominent software into account. We show that prominent software exhibits higher piracy rates than non-prominent software. However, contrary to intuition, this does not necessarily mean that prominent software developers benefit more from increased software protection. Indeed, we show that prominent developers may lose out whereas non-prominent developers may gain from better software protection.

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Authors/Creators:	Rasch, A. Wenzel, T.
Copyright, Publisher and Additional Information:	© 2018 Elsevier. This is an author produced version of a paper subsequently published in Telecommunications Policy. Uploaded in accordance with the publisher's self-archiving policy. Article available under the terms of the CC-BY-NC-ND licence (https://creativecommons.org/licenses/by-nc-nd/4.0/).
Keywords:	Piracy; Platform; Software; Two-sided market
Dates:	Published (online): 23 January 2015 Published: September 2015
Institution:	The University of Sheffield
Academic Units:	The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield)
Depositing User:	Symplectic Sheffield
Date Deposited:	23 Oct 2018 11:52
Last Modified:	23 Oct 2018 11:55
Published Version:	https://doi.org/10.1016/j.telpol.2014.11.003
Status:	Published
Publisher:	Elsevier
Refereed:	Yes
Identification Number:	https://doi.org/10.1016/j.telpol.2014.11.003

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The impact of piracy on prominent and non-prominent software developers

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