We present a framework to evaluate the impact of digital music distribution. We set up a representative model that enables the comparative static analysis. We then interpret two empirical observations about the music industry, the sales decline and the price constancy, and fit the model to these...

We present a framework to evaluate the impact of digital music distribution. We set up a representative model that enables the comparative static analysis. We then interpret two empirical observations about the music industry, the sales decline and the price constancy, and fit the model to these...

The purpose of this paper is to investigate how different types of strategic interactions between two firms affect their optimal pricing and private copy protection levels of digital products. In our model, the firms do not directly interact with each other in terms of prices, but they become...

Despite government policies targeting it, digital piracy remains rampant. Academic research has not reached a consensus on whether piracy is harmful to the affected firms or industries. This study constructs a new piracy index based on internet search frequency in China that reflects the...