Software piracy

Givon, Mahajan, and Muller (1995) suggest a modeling approach to track legal and illegal diffusion of software in order to estimate the pirated adoptions over time and the percentage of legal adoptions due to the influence of pirates. Their study focused on two popular types of software (spreadsheets and word processors) in England. The major difficulty of such a study is that even if one has data on the number of microcomputers and the legal adoption of software, still one cannot assume that...

Selected References

Warren-Boulton, and G. Woroch. 1995. Microsoft Plays Hardball The Use of Exclusionary Pricing and Technological Incompatibility to Maintain Monopoly Power in Markets for Operating systems. Antitrust Bulletin 40 265-315. Bresnahan, T., and S. Greenstein. 1997. Technical Progress and Co-Invention in the Computing and in the Use of Computers. Brookings Papers on Economics Activity Microeconomics 1-78. Bresnahan, T., and S. Greenstein. 1999. Technological Competition and the...

Uij h fPj V 5 if purchasing system Yj 230

3 - PX Pj - 5 if purchasing system XiYi 3 - pX Pi - 25 if purchasing system XjY . Thus, in this simple model each consumer has a different ideal system under equal prices . The utility function 2.30 shows that a consumer purchasing his ideal system gains a gross utility level of 3. If the system he buys has one component from his ideal system and one component from his less preferred system, his gross utility level is reduced by 5. A consumer who purchases a system in which both components are...