reward theory (copyright) theory...january 21, 2010 © 2008, william fisher. this work is licensed...
TRANSCRIPT
![Page 1: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/1.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Reward Theory (Copyright)
William Fisher September 15, 2009
![Page 2: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/2.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
![Page 3: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/3.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
Marginal Cost
![Page 4: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/4.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
Marginal Cost
Willingness and ability to pay of consumer X
P(X)
X
![Page 5: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/5.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
P(Y)
Y
Marginal Cost
Willingness and ability to pay of consumer Y
P(X)
X
![Page 6: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/6.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
P(Y)
Y
Marginal Cost
Willingness and ability to pay of consumer Z
P(X)
X
P(Z)
Z
![Page 7: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/7.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
P(Y)
Y
Marginal Cost
Aggregate Consumer Demand
P(X)
X
P(Z)
Z
![Page 8: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/8.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
P(Y)
Y
Marginal Cost
In the absence of copyright, copying and competition will drive the price down close to marginal cost
P(X)
X
P(Z)
Z
![Page 9: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/9.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
P(Y)
Y
Marginal Cost
In the absence of copyright, copying and competition will drive the price down close to marginal cost
P(X)
X
P(Z)
Z
![Page 10: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/10.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
P(Y)
Y
Marginal Cost
In the absence of copyright, copying and competition will drive the price down close to marginal cost
P(X)
X
P(Z)
Z
![Page 11: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/11.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
P(Y)
Y
Marginal Cost
In the absence of copyright, copying and competition will drive the price down close to marginal cost
P(X)
X
P(Z)
Z
![Page 12: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/12.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
P(Y)
Y
Marginal Cost
In the absence of copyright, copying and competition will drive the price down close to marginal cost
P(X)
X
P(Z)
Z
![Page 13: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/13.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
P(Y)
Y
Marginal Cost
In the absence of copyright, copying and competition will drive the price down close to marginal cost
P(X)
X
P(Z)
Z
![Page 14: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/14.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
P(Y)
Y
Marginal Cost
In the absence of copyright, copying and competition will drive the price down close to marginal cost
P(X)
X
P(Z)
Z
![Page 15: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/15.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
P(Y)
Y
Marginal Cost
In the absence of copyright, copying and competition will drive the price down close to marginal cost
P(X)
X
P(Z)
Z
![Page 16: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/16.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
P(Y)
Y
Marginal Cost
In the absence of copyright, copying and competition will drive the price down close to marginal cost
P(X)
X
P(Z)
Z
![Page 17: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/17.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
P(Y)
Y
Marginal Cost
P(X)
X
P(Z)
Z Q
In the absence of copyright, copying and competition will drive the price down close to marginal cost
![Page 18: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/18.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
P(Y)
Y
Marginal Cost
In the absence of copyright, copying and competition will drive the price down close to marginal cost
P(X)
X
P(Z)
Z
Resultant Consumer Surplus
Q
![Page 19: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/19.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
P(Y)
Y
Marginal Cost
P(X)
X
P(Z)
Z Q
In the absence of copyright, copying and competition will drive the price down close to marginal cost
![Page 20: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/20.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
P(Y)
Y
Marginal Cost
P(X)
X
P(Z)
Z
![Page 21: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/21.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
P(Y)
Y
Marginal Cost
P(X)
X
P(Z)
Z
Profit-Maximizing Behavior by a Copyright Owner who can engage in perfect price discrimination
![Page 22: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/22.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
P(Y)
Y
Marginal Cost
P(X)
X
P(Z)
Z
Profit-Maximizing Behavior by a Copyright Owner who can engage in perfect price discrimination
![Page 23: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/23.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Conditions Created by the Grant of a Copyright
$
Quantity
P(Y)
Y
Marginal Cost
Profit-Maximizing Behavior by a Copyright Owner who can engage in perfect price discrimination
P(X)
X
P(Z)
Z Profit-maximizing output
“Monopoly Profits”
![Page 24: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/24.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
$
Quantity
C G
H
Marginal Cost
O
A
I
![Page 25: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/25.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
$
Quantity
C G
H
Marginal Cost
O
A
I
p
Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
![Page 26: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/26.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
$
Quantity
C G
H
Marginal Cost
O
A
I
p
u
Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
![Page 27: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/27.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
$
Quantity
C G
H
Marginal Cost
O
A
I
p
u
Revenues
Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
![Page 28: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/28.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
$
Quantity
C G
H
Marginal Cost
O
A
I
p
u
Costs
Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
![Page 29: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/29.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
$
Quantity
C G
H
Marginal Cost
O
A
I
p
u
Profits
Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
![Page 30: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/30.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
$
Quantity
C G
H
Marginal Cost
O
A
I
p
u
Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
![Page 31: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/31.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
$
Quantity
C G
H
Marginal Cost
O
A
I
p
u
q
Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
![Page 32: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/32.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
$
Quantity
C G
H
Marginal Cost
O
A
I
p
u
q
v
Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
![Page 33: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/33.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
$
Quantity
C G
H
Marginal Cost
O
A
I
p
u
q
v
Revenue loss
Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
![Page 34: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/34.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
$
Quantity
C G
H
Marginal Cost
O
A
I
p
u
q
v
Revenue loss
Revenue gain
Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
![Page 35: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/35.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
$
Quantity
C G
H
Marginal Cost
O
A
I
p
u
q
v
Profits
Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
![Page 36: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/36.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
$
Quantity
C G
H
Marginal Cost
O
A
I
p
u
q
v
r
Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
![Page 37: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/37.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
$
Quantity
C G
H
Marginal Cost
O
A
I
p
u
q
v
r
w
Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
![Page 38: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/38.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
$
Quantity
C G
H
Marginal Cost
O
A
I
p
u
q
v
r
w
Revenue loss
Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
![Page 39: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/39.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
$
Quantity
C G
H
Marginal Cost
O
A
I
p
u
q
v
r
w
Revenue loss
Revenue gain
Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
![Page 40: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/40.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
$
Quantity
C G
H
Marginal Cost
O
A
I
p
u
q
v
r
w
Profit
Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
![Page 41: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/41.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
$
Quantity
C G
H
Marginal Cost
O
A
I
Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
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January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
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Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
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January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
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Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
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January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
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Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
![Page 45: Reward Theory (Copyright) Theory...January 21, 2010 © 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License. Economic](https://reader034.vdocuments.net/reader034/viewer/2022042804/5f5aa4c6ef739a43ae0f0c65/html5/thumbnails/45.jpg)
January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
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Marginal Revenue
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Profit-Maximizing Behavior by a Copyright Owner in the absence of Price Discrimination
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January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Effects of Profit-Maximizing Behavior by a Copyright Owner
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Consumer Surplus
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January 21, 2010
© 2008, William Fisher. This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.
Economic Effects of Profit-Maximizing Behavior by a Copyright Owner
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B
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F
G
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Marginal Cost
Profit-maximizing output
Prof
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Monopoly Profits
O
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I
1
2
3
Consumer Surplus
Deadweight Loss (foregone consumer surplus)
E