mflow and economics fun

It’s nice (and perhaps, dare I say unusual?) when an economic paper comes to life. A while ago a group of researchers in Germany reported on an experiment testing attitudes to a legal file-sharing site with a twist: revenue was split between sellers and sharers.

So if user A downloaded a file from user B, user B would keep a percentage of the purchase price, with the rest going to the “professional seller”. The study found that users responded positively to revenue-splitting – users felt that they were being taken seriously and thought the arrangement to be fair. This is particularly important when surveys suggest many potential music fans don’t see anything wrong with pirating, because a pirated copy just means less money for overpaid music executives.

Users also enjoyed feeling part of an online community.

And now, we have mflow, where users who successfully get one of their friends to buy a track get a 20% cut.

Tried and tested in the lab – but will it work in practice?

This entry was posted in Comment on the news and tagged , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s