Lobbying and commercial software piracy

This paper uses a strategic entry-deterrence framework to address the issue of public policy regarding anti-commercial piracy. Not monitoring is the unique socially optimal policy and the pirate always enters the market. However, special interest lobbying may result in monitoring as the optimal policy. Optimal monitoring may deter the pirate's entry. The entry deterring equilibrium price is less than or equal to the monopoly price, depending on optimal monitoring, which in turn depends on the extent of lobbying.