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Economics of File-Sharing

Posted by michael on from the invisible-hand dept.

Umair writes "The Red Herring's got an article by me about the economics of file-sharing, which argues that the music industry should provide insurance...against itself. This is because the contract listeners sign with labels is risky - it lets labels shirk on their end of the bargain. That's why file-sharing isn't just 'theft', it's risk-sharing. The original, longer, version of the paper is here, which argues that this a situation economists call double moral hazard."

2 of 265 comments (clear)

  1. Re:Double - moral hazard? by Anonymous Coward · · Score: 0, Troll


    uhhh ... you spelled sarcasm wrong.

  2. Huh? by Anonymous Coward · · Score: 0, Troll

    File-sharing is as much about risk-sharing as it is about the 'theft' of value.

    So it's still about theft of value then. Which makes it wrong. Thanks - next article please.