The free-rider concept occurs when person enjoys

Assignment Help Business Economics

Reference no: EM131101262

The free-rider concept occurs when a person enjoys the benefits of a good or service without paying for it. Music files are nonrival and effectively nonexcludable, thus creating a free-rider problem. The courts address this problem by enforcing copyright laws restricting the legal right to copy music files, although the cost of enforcing these property rights is high. Another solution to this problem may be to place a tax on MP3 players and distribute the revenues to performers and recording companies, but this approach doesn’t provide an incentive to limit illegal file sharing. Post your discussion regarding the best solutions to resolve this problem

Do you concur that the best solution is for the courts to enforce property rights, and for the recording companies to pursue illegal music file sharers by suing for large penalties? Or would you rather see a tax placed on MP3 players where the tax revenues may be distributed to the music performers and recording companies? Or do you have a proposal of your own which addresses this problem?

Reference no: EM131101262

Questions Cloud

The liabilities of partners in a general partnership : What is the extent of the liabilities of partners in a general partnership? How does the limited partnership differ from the general partnership? What actions, if any, should the partnership take during any “winding up” period?

The credit market reaches an equilibrium when : According to classical economists, the credit market reaches an equilibrium when:

Suppose the immigrant flow from country : Suppose the immigrant flow from Country X to the US is positively selected. That is, highskilled workers are more likely to leave Country X to move to the US. In order to mitigate this “brain drain” Country X experiences as a result of this migration..

What would be the labor market effects of such policy : One way for the government to facilitate economic growth is for it to pay workers in depressed areas to move to regions where jobs are more plentiful. What would be the labor market effects of such a policy?

The free-rider concept occurs when person enjoys : The free-rider concept occurs when a person enjoys the benefits of a good or service without paying for it. Music files are nonrival and effectively nonexcludable, thus creating a free-rider problem. Do you concur that the best solution is for the co..

Aggregrate demand and aggregate supply curves : List the characteristics of each school of thought and draw the aggregrate demand and aggregate supply curves that demonstrate of each school of thought:

Potential employers after receiving your college degree : Signaling occurs when an informed person takes actions that send information to uninformed persons. The grades and degrees that a university awards students are signals. They inform potential (uninformed) employers about the abilities of the candidat..

What is the present value of this stream of fixed payments : You won $25 million in a state lottery that promises to pay $1 million (tax free) in the next 25 years. a) Have you won $20 million? b) What is the present value of this stream of fixed payments (assume that the annual interest rate is 6%? (Note you ..

Explain the concept of devaluation : Explain the concept of devaluation, and explain the effect devaluation has on the price of a country's imports. What some effects on the industry? Buying and selling countries? Give an example that supports your claims.

User Account

All Pages