A BEJEAP Topics article.

Abstract

This paper investigates if economic theory can explain variations in piracy behavior between individuals and between countries. It is demonstrated that economic theory explains a notable part of the individual variation in a survey study. Individuals with a low net valuation of an original when a copy is available are more prone to engage in piracy than individuals with a higher valuation. Individuals with a low cost of obtaining and handling copies are also more engaged in piracy. The country-wise variation can also be explained by economic variables; GNI/capita and judicial efficiency explain a substantial part of this variation.

Erratum

The data set used for the Rule of Law indicator (p.9) is incorrect, though it happens to be statistically associated with the dependent variable (i.e., the piracy rate, p.8) in a similar way as the correct data. The correct data set changes Figure 2 (p. 10), the range (p. 9), the correlation coefficient (p. 9), and the regression coefficients in Table 4 (p. 10). Further information is available from the author. As stated in the article (p. 9) the correlation between the Rule of Law indicator and the piracy rate is negative and significant. The correlation coefficient is -0.67, which indicates a stronger (uncontrolled) negative association than stated in the article. Consequently, the relationship illustrated in Figure 2 would be more evident. Both Income and RuleLaw are still significant, but the degree of significance of the latter has decreased. Finally, I am indebted to Antonio Rodrigues Andres at the University of Southern Denmark for discovering this error.

Submitted: August 19, 2002 · Accepted: October 28, 2002 · Published: April 30, 2003

Originally published in Topics in Economic Analysis & Policy.

Recommended Citation

Holm, Håkan J. (2003) "Can economic theory explain piracy behavior?," Topics in Economic Analysis & Policy: Vol. 3 : Iss. 1, Article 5.
Available at: http://www.bepress.com/bejeap/topics/vol3/iss1/art5