2. Method
To provide a wider perspective of the issues, we will be pursuing a number of research avenues including:
- a literature review;
- data analyses; and
- interviews with key players.
2.1 Literature Review
Parallel importing is an issue that has generated significant interest in many countries. A range of interesting insights is available from the literature in these countries. Empirical evidence is in particularly short supply but some studies from the US and the UK are available.
The Australian government has been proactive in changing parts of the parallel importing restrictions that apply in that country. Evaluations or discussions of those changes and the events that led up to them may provide useful information for the present analysis.
2.2 Data Analyses
In an attempt to fill the empirical gap in this area, we have gathered a range of price and quantity data which allow us to make some quantitative estimates of the possible effects of the parallel importing restriction. For each of the markets we have quantified the welfare effect of a change in the restriction, using standard techniques of welfare cost/benefit analysis.
2.3 Interviews
The purpose of the interviews was to provide an industry view and a practical perspective on the issues that were raised in the literature. The selection process hinged around getting a balanced perspective from the range of interested parties in each of the markets including:
- copyright holders;
- industry bodies;
- consumer groups;
- retailers; and
- distributors.
The interviews aimed to identify likely effects on consumers and also possible changes to the market structure and how these might impact on both producers and consumers. It was not possible to interview every person and organisation with an interest in the issue but the sample we chose provided a good cross section of views. The views of other organisations were incorporated through their submissions to the 1994 inquiry into the parallel importing issue. The structure for interview questions appears as Appendix A.
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