Digital product piracy and competition

Abstract

This thesis studies the optimal copyright protection level for a single firm. We consider two market settings: monopoly and duopoly under Cournot competition. We also analyze the optimal level in Cournot setting in two subsections: with and without a cost of implementing protection. The optimal level for the monopolist without any potential competitors is full protection. Under competition, for sufficiently high fixed cost values, the monopolist firm chooses a level which is below the monopoly setting. We also show that with implementation costs, competition is stronger

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