Why the music industry may gain from free downloading - The role of sampling

2025-02-24 Classification：Music Click()
Author：Peitz, Martin; Waelbroeck, Patrick

Article Title：Why the music industry may gain from free downloading - The role of sampling

Abstract：
Downloading digital products for free may harm creators and intermediaries because consumers may no longer buy the version for sale. However, as we show in this paper, this negative effect may be overcompensated by a positive effect due to sampling: consumers are willing to pay more because the match between product characteristics and buyers' tastes is improved. This indeed holds under sufficient taste heterogeneity and product diversity. (c) 2005 Elsevier B.V All rights reserved.

Keywords: file-sharing; P2P; sampling; information transmission; piracy; music

DOI: 10.1016/j.ijindorg.2005.10.006

Source：INTERNATIONAL JOURNAL OF INDUSTRIAL ORGANIZATION

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