A first effect regards
the fact that piracy hurts legitimate producers, since the users
who would have purchased an original content can obtain it
for free thanks to the file sharing services: the very large
decline in CD sales that immediately followed the onset of this
new distribution channel is, in fact, a powerful piece of
evidence on its own. Another effect, having opposite sign,
explains how users’ willingness to pay for the original content
may actually increase due to the “anticipation effect”
generated by the sharing of the content online. Furthermore,
despite the impact on sales volume, online music piracy does
not tarnish author’s creative process; as Oberholzer-Gee and
Strumpf (2010) demonstrate, file sharing has not undermined
author’s creativity since their works keep coming out: to
further confirm this fact, since the advent of file sharing, the
production of music, books and movies has increased sharply
A first effect regardsthe fact that piracy hurts legitimate producers, since the userswho would have purchased an original content can obtain itfor free thanks to the file sharing services: the very largedecline in CD sales that immediately followed the onset of thisnew distribution channel is, in fact, a powerful piece ofevidence on its own. Another effect, having opposite sign,explains how users’ willingness to pay for the original contentmay actually increase due to the “anticipation effect”generated by the sharing of the content online. Furthermore,despite the impact on sales volume, online music piracy doesnot tarnish author’s creative process; as Oberholzer-Gee andStrumpf (2010) demonstrate, file sharing has not underminedauthor’s creativity since their works keep coming out: tofurther confirm this fact, since the advent of file sharing, theproduction of music, books and movies has increased sharply
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