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Review of Law & Economics

Editor-in-Chief: Parisi, Francesco

Ed. by Cooter, Robert D. / Gómez Pomar, Fernando / Kornhauser, Lewis A. / Parchomovsky, Gideon / Engel, Christoph

SCImago Journal Rank (SJR) 2015: 0.196
Source Normalized Impact per Paper (SNIP) 2015: 0.401
Impact per Publication (IPP) 2015: 0.244

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Volume 13 (2017)

Copyright Infringement, Product Quality and Producer's Profit

Dyuti Banerjee1 / Vivekananda Mukherjee2

1Department of Economics, Monash University, Australia

2Department of Economics, Jadavpur University, India

Citation Information: Review of Law & Economics. Volume 3, Issue 3, Pages 793–816, ISSN (Online) 1555-5879, DOI: https://doi.org/10.2202/1555-5879.1159, December 2007

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This paper uses a strategic entry-deterrence framework to study the relationship between copying cost, and a monopolist’s profit and product quality. The potential entrant is a fake-producer producing and selling identical copies of the monopolist’s product. The monopolist’s subgame perfect equilibrium quality and profit is either unaffected or positively affected by changes in the copying cost. Tariffs on copying devices may be an effective copyright right protection instrument. Though an increase in tariff increases the product quality and monopolist’s profit, its welfare effects are ambiguous.

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