Social construct and the propensity for software piracy

Abstract

This study offers evidence that cross-country variation in software piracy is a combination of both traditional economic influences and institutional social mores. Software piracy rates are related to various economic variables and two measures of social construct. The study includes an individualism score, which measures horizontal social relationships, and a measure of power distance, measuring vertical social relationships. It is found that economic variables do play a role in the decision to pirate software and that increased power-distance, or the further individuals feel from their superiors, for example law enforcement officials, the greater the propensity to pirate software.

Notes

* Corresponding author.

¹ This variable precludes the inclusion of the USA in the estimated models.

² However, these results should be interpreted with caution as they are most likely reduced form parameters with ambiguous structural equivalents. A more sophisticated, multi-equation estimation technique would be more appropriate to determine the actual influence of inflation on software piracy.