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Digital piracy and the perception of price fairness

Author

Listed:
  • Michal Krawczyk

    (Faculty of Economic Sciences, University of Warsaw)

  • Anna Kukla-Gryz

    (Faculty of Economic Sciences, University of Warsaw)

  • Joanna Tyrowicz

    (Faculty of Economic Sciences, University of Warsaw; National Bank of Poland)

Abstract

We focus on the relationship between pricing of cultural goods and willingness to download their unauthorized versions. Building on equity theory we propose that perceiving a price as overly high provides a self-justification for downloading content from unauthorized sources. In a large-scale online experiment on customers of a major e-book store we employ the Bayesian Truth Serum to induce truthful confessions of acquiring content from unauthorized sources. We confirm that self-reported downloading from unauthorized sources is associated with having experienced overpricing. We also relate it to endorsing relatively positive views on the role of file-sharing services and believing that "pirate's" motives are relatively principled, while those of abstainers are rather pragmatic.

Suggested Citation

  • Michal Krawczyk & Anna Kukla-Gryz & Joanna Tyrowicz, 2015. "Digital piracy and the perception of price fairness," Working Papers 2015-24, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2015-24
    as

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    File URL: http://www.wne.uw.edu.pl/index.php/download_file/1879/
    File Function: First version, 2015
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    References listed on IDEAS

    as
    1. Franziska Voelckner, 2006. "An empirical comparison of methods for measuring consumers’ willingness to pay," Marketing Letters, Springer, vol. 17(2), pages 137-149, April.
    2. Barrage, Lint & Lee, Min Sok, 2010. "A penny for your thoughts: Inducing truth-telling in stated preference elicitation," Economics Letters, Elsevier, vol. 106(2), pages 140-142, February.
    3. Charles Hill, 2007. "Digital piracy: Causes, consequences, and strategic responses," Asia Pacific Journal of Management, Springer, vol. 24(1), pages 9-25, March.
    4. Martyna Kobus & Michał Krawczyk, 2013. "Piracy as an ethical decision," Working Papers 2013-22, Faculty of Economic Sciences, University of Warsaw.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    inequality; longevity; defined contribution; defined benefit; Gini;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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