Jump to ContentJump to Main Navigation

The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Jürges, Hendrik / Ludwig, Sandra

Ed. by Auriol , Emmanuelle / Brunner, Johann / Fleck, Robert / Friebel, Guido / Mendola, Mariapia / Requate, Till / Tsui, Kevin / Wichardt, Philipp / Zulehner, Christine

4 Issues per year

IMPACT FACTOR 2014: 0.336
5-year IMPACT FACTOR: 0.848

SCImago Journal Rank (SJR) 2014: 0.633
Source Normalized Impact per Paper (SNIP) 2014: 0.606
Impact per Publication (IPP) 2014: 0.640


Piracy and the Legitimate Demand for Recorded Music

Kai-Lung Hui1 / Ivan Png2

1National University of Singapore,

2National University of Singapore,

Citation Information: Contributions in Economic Analysis & Policy. Volume 2, Issue 1, ISSN (Online) 1538-0645, DOI: 10.2202/1538-0645.1160, September 2003

Publication History

Published Online:


Publishers of computer software and music claimed losses of over $17.6 billion to piracy in 2002. Theoretically, however, piracy may raise legitimate demand through positive demand-side externalities, sampling, and sharing. Accordingly, the actual impact of piracy on the legitimate demand is an empirical issue. Addressing this issue in the context of recorded music, we develop and test hypotheses from theoretical models of piracy on international data for music CDs over the period 1994-98. Empirically, we find that the demand for music CDs decreased with piracy, suggesting that "theft" outweighed the "positive" effects of piracy. However, the impact of piracy on CD sales was considerably less than estimated by industry. We estimated that, in 1998, actual losses amounted to about 6.6% of sales, or 42% of industry estimates. But, we found evidence that publishers would have raised prices in the absence of piracy, suggesting that the actual revenue loss would have been higher.

Keywords: piracy; copyright; music

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

Kutoma Wakunuma and Nico Meissner
Journal of Information, Communication and Ethics in Society, 2011, Volume 9, Number 3, Page 195
Gilles Grolleau, Naoufel Mzoughi, and Angela Sutan
The Journal of Socio-Economics, 2008, Volume 37, Number 6, Page 2417

Comments (0)

Please log in or register to comment.