Piracy of Music from Economic Point of View

In this study the effect of illegal music consumption is explored via two models. The first one considers behaviour of people in hypothetical situations of a new album release. Another one is rather retrospective and discusses the effect of information sources in number of concerts attended. The first model does not provide meaningful information to make conclusions. Another one shows that illegal sources of information make the greatest contribution to the number of concerts attended. Both models include a proxy of involvement in music consumption in form of hours of music listening a week. For the second model these variables appeared to be significant and have positive effect on concert attendance. Factor analysis was also used to group genres into meaningful groups to be used as control variables. The effect of these factors in the second model is ambiguous. However, exploring subsamples based on genres, showed a clear pattern for each particular genre, such as positive effect of illegal music sources on concert attendance.