Mortimer, Julie Holland2009-11-302007Mortimer, Julie Holland. 2007. Price discrimination, copyright law, and technological innovation: Evidence from the introduction of DVDs. Quarterly Journal of Economics 122(3): 1307-1350.0033-5533http://nrs.harvard.edu/urn-3:HUL.InstRepos:3425914U. S. copyright law effectively prevents direct price discrimination for copyright holders that sell to different markets. In response, these firms can engage in indirect price discrimination. I derive theoretical predictions about the use of indirect price discrimination, and I analyze how optimal pricing strategies differ for different products. Using data on VHS and DVD movie distribution, I find that firms' pricing choices are consistent with the predictions of theory and that firms' use of indirect price discrimination benefits consumers (but harms ancillary retailers). Finally, I examine what optimal pricing strategies might look like in a legal environment that permits direct price discrimination.en-USJournal Article2009-11-3010.1162/qjec.122.3.1307