Piracy and Technology Adoption - Does it Help or Hurt?

摘要: Advances in technology have enabled producers of entertainment goods to reach customers innovative ways. However, new technologies also make it easier for users infringe on the content. Producers argue that piracy hurts their ability innovate, while critics acts as a leveler and encourages consumer friendly innovation. In this paper, we explore interplay adoption based dynamic model. model, firm always releases physical product initially has decision whether when adopt newer digital platform facilitate release. The can help producer target broader customer base, but be costly might lead higher level. We show that, cost innovation is small, existing channel no effect timing adoption. sufficiently high, will act competing force an earlier if large number are willing move legal version at full price. If not, discourages delays addition, caused by monopolist delay Thus, only under specific conditions, does create incentives innovations. most case, actually While find some level beneficial consumers, platform, hurting overall welfare.