Software Piracy in the Video Game Market

Arbeitspapier

In this paper, the market for video games is considered, where some firms produce both, hardware and software. It is analyzed, whether these firms are interested in strategically enabling software piracy. It will be shown that this is indeed the case, if firms di¤er substantially in hardware production costs. Then, the low-cost producer gains from enabling software piracy in two ways. First, it increases its market share in the hardware and, accordingly, in the software market. Second, it can raise its hardware price. These two benefits overcompensate the loss resulting from a higher fraction of pirating consumers in the software market.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Bonn Econ Discussion Papers ; No. 20/2006

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Information and Internet Services; Computer Software ; Oligopoly and Other Imperfect Markets ; Firm Behavior: Theory
• Thema: Video Games Market ; Software Piracy ; Fundamental Transformation

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Gürtler, Oliver
• Ereignis: Veröffentlichung
• (wer): University of Bonn, Bonn Graduate School of Economics (BGSE)
• (wo): Bonn
• (wann): 2006

Weitere Informationen

• Handle: http://hdl.handle.net/10419/22965
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ