Resource title

Software Piracy in the Video Game Market

Resource image

image for OpenScout resource :: Software Piracy in the Video Game Market

Resource description

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.

Resource author

Oliver Gürtler

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/22965

Resource license

Adapt according to the presented license agreement and reference the original author.