The digitization of content has led to the growth of platforms that draw news and information from multiple sources. Policy makers are concerned that these new platforms threaten incentives for the production of original content. As a result, policymakers in Europe are contemplating regulations that would force such aggregators to pay each time they aggregate content. To understand the possible...

This paper develops a simple model of piracy to analyze its effects on prices and welfare and to study the optimal enforcement policy. A monopolist produces an information good (involving a “large” development cost and a “small” reproduction cost) that is sold to two groups of consumers differing in their valuation of the good. We distinguish two settings: one in which the monopoly is regulated...

Benkler (‘Sharing Nicely’, Yale Law Journal, 2004, Vol. 114, pp. 273-358) has argued that ‘social sharing’ via Internet-based distributed computing is a new, so far under-appreciated modality of economic production. This paper presents results from an empirical study of SETI@home (the Search for Extraterrestrial Intelligence), which is the classic example of such a computing project. The aim is...

This paper analyses the development of software in India and Ireland. The development patterns of the software industry in Ireland and India clearly show both the advantages and disadvantages of being a follower. The most obvious advantage is the ability to sustain growth without a broad based set of technical capabilities, at least initially. With the leaders creating and defining markets, and...

The digital revolution means that consumers can now quickly and easily access content that is aggregated from many online sources. However, digital aggregation has tested the boundaries of copyright law. It is not clear whether allowing extracts of copyrighted works to be distributed by others benefits or harms copyright holders. We ask whether digital aggregation encourages users to “skim” or ...

This paper documents what economists have learned about UGC and social media. A growing body of evidence suggests that UGC on platforms ranging from Yelp to Facebook has a large causal impact on economic and social outcomes ranging from restaurant decisions to voting behavior. These findings often leverage unique data sets and methods ranging from regression discontinuity to field experiments, ...

The equilibrium model of Ellison, Fudenberg, and Möbius (2004) predicts that, if two competing auction sites are coexisting, then seller revenues and buyer-seller ratios on each site should be approximately equal. We examine these hypotheses using …eld experiments selling identical items on the eBay and Yahoo auction sites. We …nd evidence that is inconsistent with the equilibrium hypotheses, a...

This paper analyzes two-sided competition in the video game industry. Video game platforms compete for software publishers and gamers and may invest into in-house publishing of own software (games) before they enter competition. Such investments affect the strength of the indirect network externalities between gamers and publishers in equilibrium. If publishers multihome, i.e., if they can rele...

Benkler (‘Sharing Nicely’, Yale Law Journal, 2004, Vol. 114, pp. 273-358) has argued that ‘social sharing’ via Internet-based distributed computing is a new, so far under-appreciated modality of economic production. This paper presents results from an empirical study of SETI@home (the Search for Extraterrestrial Intelligence), which is the classic example of such a computing project. The aim is...