International Software Piracy: Analysis of Key Issues and Impacts
Information Systems Research
Information Goods Pricing and Copyright Enforcement: Welfare Analysis
Information Systems Research
Managing Digital Piracy: Pricing and Protection
Information Systems Research
Information Systems Research
A Pricing Mechanism for Digital Content Distribution Over Computer Networks
Journal of Management Information Systems
International Journal of Electronic Commerce
Electronic Commerce and Organizational Innovation: Aspects and Opportunities
International Journal of Electronic Commerce
Journal of Management Information Systems
Journal of Management Information Systems
Optimal Pricing of Digital Experience Goods Under Piracy
Journal of Management Information Systems
An Economic Analysis of Policies for the Protection and Reuse of Noncopyrightable Database Contents
Journal of Management Information Systems
Global Perspectives on Information, Communication, and E-Commerce
Journal of Management Information Systems
Versioning and Piracy Control for Digital Information Goods
Operations Research
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Many countries limit the influence of foreign entertainment products, such as music, film, and television programs, to protect their domestic cultural industry. Commonly observed policy tools include quotas, tariffs, and subsidies. However, advances in digital technology enable consumers to access digital versions of foreign entertainment programs via the Internet, a leakage channel that bypasses government protection methods. This calls for a reexamination of the effectiveness of these traditional tools. We build a unified analytical framework to study the impact of digital technology on cultural protection policies. We find that in the presence of Internet leakage, imposing a quota is the least effective protection policy to maximize the total domestic social welfare, but using either a tariff or subsidy policy is optimal, depending on the quality difference between domestic and foreign entertainment programs via the traditional channel and the Internet. Using quotas remains the least effective policy when we extend the analyses to consider the presence of piracy. In addition to the quality difference between foreign and domestic entertainment, the proportion of unethical consumers and the cost of piracy determine whether using tariffs or subsidies is the optimal policy.