Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/188888 
Authors: 
Year of Publication: 
2018
Series/Report no.: 
Queen's Economics Department Working Paper No. 1354
Publisher: 
Queen's University, Department of Economics, Kingston (Ontario)
Abstract: 
I quantify the effects of private-network music sharing on aggregate album sales in the BitTorrent era using a panel of US sales and private-network downloads for 2,109 albums during 2008. Exogenous shocks to the network's sharing constraints address the simultaneity problem. In theory, private-network activity could crowd out sales by building aggregate file sharing capacity or increase sales through word of mouth. I find evidence that private-network sharing results in decreased album sales for top-tier artists, though the economic impact is quite modest. However, private-network activity seems to help mid-tier artists. The results are consistent with claims that word of mouth is stronger for lesser-known artists and that digital sales are more vulnerable to increases in file sharing capacity. I discuss policy implications and alternatives to costly legal efforts to shut down private file sharing networks.
Subjects: 
intellectual property
copyright
file sharing
piracy
digital music
JEL: 
L82
L86
O34
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.