BELLEFLAMME, Paul; PICARD, Pierre - Center for Operations Research and Econometrics (CORE), … - 2005
The effects of (private, small-scale) piracy on the pricing behavior of producers of information goods are studied … within a unified model of vertical differentiation. Although information goods are assumed to be perfectly differentiated … competitiondrives prices up and may lead to price dispersion. Competition reduces total surplus in the short run but provides higher …