Digital piracy: An assessment of consumer piracy risk and optimal supply chain coordination strategies.

Abstract

Digital piracy and the emergence of new distribution channels have changed the dynamics of supply chain coordination and created many interesting problems. There has been increased attention to understanding the phenomenon of consumer piracy behavior and its impact on supply chain profitability. The purpose of this dissertation is to better understand the impact of digital piracy on online music channel and optimal supply chain strategies which achieve high levels of coordination. A multi-method approach including survey, mathematical modeling, and simulation are used to a) analyze the impact of piracy on digital music channel coordination under different contract arrangements, b) develop theoretical and operational basis for conceptualizing a measurement model of consumer piracy risk, c) examine the effectiveness of piracy control strategies used to dissuade consumers from illegal music downloads. Findings from this dissertation contribute to the literature on digital piracy, consumer piracy behavior, online channel distribution, and supply chain coordination, and provide several important managerial implications

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