An economic analysis of fakes differs substantially from the legal and the art historic views which both tend to propose repressive policies against imitations. But there are large economic benefits from copying. In particular the 'propagation effect' yields utility to both consumers and creators of the original. In contrast the harmful effects of fakes are small and are mitigated by emerging institutions guarantees sellers with reputation 1 .
Saturday, March 6, 2010
Art Theft Central: An Economic View on Forgery: