Measuring the Effect of File Sharing on Music Purchases*

  title={Measuring the Effect of File Sharing on Music Purchases*},
  author={Alejandro Zentner},
  journal={The Journal of Law and Economics},
  pages={63 - 90}
File sharing may substantially undermine the intellectual property rights of digital goods. This paper concentrates on the music industry. I estimate the effect of music downloads on the probability of purchasing music using a European individual‐level cross section of 15,000 people from 2001. A simple comparison of means shows that people who regularly download music online are more likely to buy music. The positive relationship persists when controlling for observed characteristics. However… 
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