For example, World of Goo: a great game produced by a couple of people (so you’re not “sticking it to the man if you pirate it”), released without any DRM, for the shockingly low price of $20, with a playable demo, still saw an 80-90% piracy rate. (http://2dboy.com/2008/11/13/90/)

The strong incentive you mention seems fairly weak from where I’m standing.

(Note also that they come out against DRM, even with that high a piracy rate.)

Later,
Blake.

No. They just don’t want to pay for music.

You are saying that, as an artist do the best you can, the word will spread to those with money, they will buy your work eventually. I highly doubt that. Even if you produce a masterpiece in this era, people will just download it, and then appreciate your work. That appreciation does not include paying for records.

Since free-riding is unavoidable, and most importantly is very easy and is not deterred in this case, i don’t think there is any logic in assuming that those with money will not resort to free-riding as well. And that contributes to stag-hunt mechanism that you explained in second paragraph. Soon trappers will all poach.

I don’t think there is much to do for artists and record companies. Basically, they have to invent a new way of revenue generation, or intensify on what is on hand, that can not be shared between consumers. Concerts, gigs, exclusive promotional stuff etc.

Nice article anyways.