[A2k] Study shows The Effect of File Sharing on Record Sales: An Empirical Analysis]

[Michelle Childs]

---------------------------- Original Message ----------------------------
Subject: INFO: Study shows The Effect of File Sharing on Record Sales: An
Empirical Analysis
From:    "Machiel van der Velde"
<--------------------------------------------------------------------------

"Downloads have an effect on sales that is statistically indistinguishable
from zero. Our estimates are inconsistent with claims that file sharing is
the primary reason for the decline in music sales during our study
period."

>From The Effect of File Sharing on Record Sales: An Empirical Analysis

http://www.journals.uchicago.edu/JPE/journal/issues/v115n1/31618/brief/3161=
8.abstract.html?erFrom=3D5411597742970289384Guest

Felix=A0Oberholzer-Gee Harvard University
Koleman=A0StrumpfUniversity of Kansas

For industries ranging from software to pharmaceuticals and entertainment,
there is an intense debate about the appropriate level of protection for
intellectual property. The Internet provides a natural crucible to assess
the implications of reduced protection because it drastically lowers the
cost of copying information. In this paper, we analyze whether file
sharing has reduced the legal sales of music. While this question is
receiving considerable attention in academia, industry, and Congress, we
are the first to study the phenomenon employing data on actual downloads
of music files. We match an extensive sample of downloads to U.S. sales
data for a large number of albums. To establish causality, we instrument
for downloads using data on international school holidays. Downloads have
an effect on sales that is statistically indistinguishable from zero. Our
estimates are inconsistent with claims that file sharing is the primary
reason for the decline in music sales during our study period.






--
Michelle Childs -Head of European Affairs
Consumer Project on Technology in London
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