Original title: A note on Jain's digital piracy model: horizontal vs vertical product differentiation
Authors: Kúnin, Michael ; Žigić, Krešimir
Document type: Research reports
Year: 2021
Language: eng
Series: CERGE-EI Working Paper Series, volume: 701
Abstract: We study how private intellectual property rights protection affects equilibrium prices and profits in a duopoly competition between firms that offer a product variety of distinct qualities (vertical product differentiation) in a setup that is closely related to that put forward by Jain (2008), where firms offer the same qualities in equilibrium (horizontal product differentiation). Consumers may make a choice to buy a legal version, use an illegal copy (if they want to and can), or not use a product at all. Using an illegal version violates intellectual property rights protection and is thus punishable when disclosed. Thus, both private and public (copyright) intellectual property rights protection are available on scene.
Keywords: Bertrand competition; software piracy; vertical and horizontal product differentiation

Institution: Economics Institute AS ČR (web)
Document availability information: Fulltext is available at external website.
External URL: https://www.cerge-ei.cz/pdf/wp/Wp701.pdf
Original record: http://hdl.handle.net/11104/0322539

Permalink: http://www.nusl.cz/ntk/nusl-508161


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