Along with the growing prominence of e-commerce, counterfeiting business also shows a rapid growth in the online marketplace and has developed into a substantial threat to online retailing. Hence, reaching a clear understanding of the fundamental economic incentives behind the prevalence of...

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...