I was recently reading/listening (look, I do a lot of stuff ok? I can’t remember which one it was) to a music industry spokesperson decrying the negative effects that piracy was having and how it was all the Pirates’ fault.
You see friends many of the pro-piracy voices are constantly saying that the reason they pirate is because music is too damn expensive and that if only the music industry would drop its prices fewer people would resort to piracy.
So Supply and Demand essentially means that prices will always be correct, right?
The most famous one is a Monopoly where one company has total control of something and can thus force people to pay too much for it.
And there are plenty more ways to screw with a market, but I digress.
I think that what is happening with the price of music is EXACTLY what a classic Supply and Demand curve predicts, I just think that the music industry hasn’t thought things through.
And that is EXACTLY what has happened. It’s just that the way of getting along that they have chosen does not involve going gentle into that good night but involves instead downloading a bittorrent client, getting behind peerblock and getting all the music they want for free.
The Supply and Demand curve doesn’t prove the Pirates wrong, it proves them right! In fact some professional economists have recently said exactly the same thing.
For that matter so are movies, games, software and books.
And how do I know this?
By now you should know the answer: because if they weren’t overpriced people wouldn’t pirate them. It’s simple economics.