L4D Learning for Democracy

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This paper analyses the behaviour of digital music consumers on the Internet. Using clickstream data on a panel of more than 16,000 European consumers, we estimate the effects of illegal downloading and legal streaming on the legal purchases of digital music. Our results suggest that Internet users do not view illegal downloading as a substitute for legal digital music. Although positive and significant, our estimated elasticities are essentially zero: a 10% increase in clicks on illegal downloading websites leads to a 0.2% increase in clicks on legal purchase websites. Online music streaming services are found to have a somewhat larger (but still small) effect on the purchases of digital sound recordings, suggesting complementarities between these two modes of music consumption. According to our results, a 10% increase in clicks on legal streaming websites leads to up to a 0.7% increase in clicks on legal digital purchase websites. We find important cross country differences in these effects."

"The goal of this paper is to analyze the behavior of digital music consumers on the Internet.
Using clickstream data on a panel of more than 16,000 European consumers, we estimate the
eects of illegal downloading and legal streaming on the legal purchases of digital music. Our
results suggest that Internet users do not view illegal downloading as a substitute to legal dig-
ital music. Although positive and signicant, our estimated elasticities are essentially zero: a
10% increase in clicks on illegal downloading websites leads to a 0.2% increase in clicks on legal
purchases websites. Online music streaming services are found to have a somewhat larger (but
still small) eect on the purchases of digital sound recordings, suggesting complementarities
between these two modes of music consumption. According to our results, a 10% increase in
clicks on legal streaming websites lead to up to a 0.7% increase in clicks on legal digital pur-
chases websites. We nd important cross country dierence in these eects."