October 20, 2009

Willing to Pay

A recent study at Duke University investigated why some students are willing to pay (WTP) for downloaded music while others resort to piracy by setting up a theoretical model of consumer behavior :
We find that a respondent's WTP, her subjective assessment of the probability that she will face a lawsuit, and her degree of morality all have a negative impact on the likelihood that her last song was obtained illegally.
Somewhere, Lawrence Lessig is screaming.

2 comments:

  1. What about the size of the respondent's music collection or their love for music or "free stuff"?
    A2

    ReplyDelete
  2. Very true. Is the person who steals one mp3 more guilty than the person who steals one mp3 but buys an additional 1,000? I would say the later has made a considerable monetary contribution to the artists and industry, and the petty "theft" of one song is overwhelmingly canceled out.

    Perhaps iTunes needs to start approaching distribution with more of a rummage-sale mentality--buy 10 songs, get one free and so on. With a database like iTunes, it seems like it would be pretty easy to pro-rate prices based on the expanding collection in a users' library.

    ReplyDelete

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