This paper develops a simple model of piracy to analyze its effects on prices and welfare and to study the optimal … may be responsible for the control of piracy. We show that copying or piracy might be welfare enhancing because it is a … to finance the development cost via the pricing scheme applied to high valuation consumers. The level of piracy control …

piracy there are goods that the South will not produce. Piracy will then lead to a reallocation of innovative activity in … dynamic learning externalities than the other goods, and that their share in consumption is small. Thus, whether or not piracy …) from piracy than the South, because monopoly profits eventually accrue to the North, the South may lose more than the North …