The title is a bit rough, but the argument thoughtful, and to the point. The "Market Participants" part is particularly interesting. I would however argue that the "cheapskates" are much fewer that is commonly thought. It is true that few students would happily spend $20 on a CD, but if there were no other way of getting music, most of us would go ahead and spend these $20. We would just be more parsimonious in our music/media consumption if we had to pay for everything.
I think the point is a bit clearer if you imagine each song having its own market.
I am not a member of the market for dubstep.
I am a cheapskate in the market for Taylor Swift songs - I'd never pay full price, but I could be tempted if they were twenty cents each.
I am a paying customer in the market for old blues albums.
So any one consumer is not always a cheapskate or always a paying customer. Every consumer is a cheapskate in most markets.
[+] [-] abraxasz|14 years ago|reply
[+] [-] djackson|14 years ago|reply
I am not a member of the market for dubstep. I am a cheapskate in the market for Taylor Swift songs - I'd never pay full price, but I could be tempted if they were twenty cents each. I am a paying customer in the market for old blues albums.
So any one consumer is not always a cheapskate or always a paying customer. Every consumer is a cheapskate in most markets.