Working Papers, Department of Economics, Lund University
The Computer Generation's Willingness to Pay for Originals when Pirates are Present – A CV study
Abstract: A contingent valuation method is applied to study
subjects' willingness to pay for originals when illegal copies are freely
available. The subjects consisted of 234 Swedish undergraduate students
from the "computer generation". Only 2% of the "normal" (and 0% of the
"elite") students were willing to pay the retail price for the original.
However, the majority was prepared to pay a non-negligible amount for the
original. Demand curves and profit maximizing behaviors are analyzed. The
price elasticity of piracy indicates that piracy is insensitive to price
cuts. The results have implications for the calculation of damages of
Keywords: Piracy; Contingent Valuation; Damages; Software; (follow links to similar papers)
JEL-Codes: D40; K40; K42; L20; Z10; (follow links to similar papers)
23 pages, September 27, 2000, Revised March 16, 2001
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