Handbook of Cultural Economics, Third Edition
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Handbook of Cultural Economics, Third Edition

Edited by Ruth Towse and Trilce Navarrete Hernández

Cultural economics has become well established as a subject of interest for students and teachers of courses ranging from economics to arts administration as well as for policy-makers and practitioners in the creative industries. Digitisation has had a tremendous impact on many areas of the creative economy and the third edition of this popular book fully reflects it.
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Chapter 25: Digital piracy

Jordi McKenzie


This chapter reviews the academic research related to digital piracy. The chapter begins by reviewing the collection of studies that have attempted to measure the sales displacement effect caused by piracy. It discusses the various methods and data that have been used to examine this effect across different types of (digital) entertainment content. The chapter then discusses the empirical challenge faced by such studies (the endogeneity problem), before proceeding to review a related collection of research studies that have used policy and/or supply-side shocks to identify the sales displacement effect. Finally, the chapter discusses the short- and long-run welfare implication of piracy, and the effects that new streaming services (such as Spotify and Netflix) have had on the unlawful activity.

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