“…The institutional context of recorded music consumption is laid out by analysing the copyright from a theoretical (Landes & Posner, 1989; Novos & Waldman, 1984) as well as an applied perspective (Ku, 2002; Liebowitz & Watt, 2006). The former frames the economic discussion on information goods and copying (Johnson, 1985; Varian, 2000, 2005) and introduces the debate on the potential positive effects of infringement: indirect appropriability (Liebowitz, 1985), network externalities (King & Lampe, 2003; Reavis‐Conner & Rumelt, 1991; Takeyama, 1994), bundling (Bakos et al., 1999), and sampling (Gopal et al., 2006). These offset the magnitude of the substitution effect between original and copies and lead to a theoretically ambiguous impact of file sharing (and copyright infringement in general) on revenue and/or profits.…”