Counterfeiting Models (Mathematical/Economic)

Counterfeiting and piracy are illicit activities infringing IPR (intellectual property rights). The market for counterfeit can be divided into two important submarkets. In the primary market, consumers purchase counterfeit products believing they have purchased genuine articles (deceptive counterfeiting). In the secondary market, consumers knowingly buy counterfeit products (nondeceptive counterfeiting). Counterfeiting has, obviously, consequences on genuine producers and consumers; nevertheless, it can have general socioeconomic effects. There is a considerable body of theoretical and empirical literature on the mechanisms of counterfeit trade and on the economic and social effects of counterfeiting. A number of the methodological papers are undertaken within the framework of operations research and game theory.