The Economics of Internet Media

Date: 2014
By: Peitz, Martin
Reisinger, Markus
We survey the economics literature on media as it applies to the Internet. The Internet is an important driver behind media convergence and connects information and communication technologies. While new Internet media share some properties with traditional media, several novel features have appeared: On the content side, aggregation by third parties that have no editorial policy and user-generated content have become increasingly important. On the advertiser side, fine-tuned tailoring and targeting of ads based on individual user characteristics are common features on many Internet media and social networks. On the user side, we observe increased possibilities of time-shifting, multi-homing, and active search. These changes have gone hand-in-hand with new players entering media markets, including search engines and Internet service providers. Some of these players face novel strategic considerations, such as how to present search results. In response to these changes, an emerging economics literature focuses on the allocative and welfare implications of this new media landscape. This paper is an attempt to organize these contributions and provide a selective account of novel economic mechanisms that shape market outcomes of Internet media. A large body of work has focused on the advertising part of the industry, while some studies also look at content provision and the interaction between the two.
Keywords: Internet , media economics , digital media , targeting , news aggregation , search advertising , display advertising , two-sided markets
JEL: L82 L86 M37 L13 D21 D22

Graduated Response Policy and the Behavior of Digital Pirates: Evidence from the French Three-Strike (Hadopi) Law

YNY: 這是一篇分析法國2009年實施的 Hadopi law (有在 P2P 網路的軟體盜版行為之法律: 前2次不罰, 第3次偵測到才罰) 的實證影響, 透過網路問卷。

Date: 2014
By: MICHAEL ARNOLD (Department of Economics,University of Delaware)
ERIC DARMON (CREM, University of Rennes)
SYLVAIN DEJEAN (CREM, LR-MOS, University of La Rochelle)
THIERRY PENARD (CREM, University of Rennes 1 & University of Delaware)
Most developed countries have tried to restrain digital piracy by strength- ening laws against copyright infringement. In 2009, France implemented the Hadopi law. Under this law individuals receive a warning the first two times they are detected illegally sharing content through peer to peer (P2P) networks. Legal action is only taken when a third violation is detected. We analyze the impact of this law on individual behavior. Our theoretical model of illegal be- havior under a graduated response law predicts that the perceived probability of detection has no impact on the decision to initially engage in digital piracy, but may reduce the intensity of illegal file sharing by those who do pirate. We test the theory using survey data from French Internet users. Our econometric results indicate that the law has no substantial deterrent effect. In addition, we find evidence that individuals who are better informed about the law and piracy alternatives substitute away from monitored P2P networks and illegally access content through unmonitored channels.
Keywords: Digital Piracy, digital media, Hadopi, three-strikes law, property rights
JEL: L82 O34 K42 D11