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That the producer doesn't have a way to stop the piracy is the crux of the issue. Because the black market exists, consumers have the power to place their own v
by thasmin 17y ago
That the producer doesn't have a way to stop the piracy is the crux of the issue. Because the black market exists, consumers have the power to place their own value on a product. This value is the price that they would pay for the product if it were legally available at that price.
The product's price is relative to the marginal cost of production because that's the cost on the black market. The producer is competing with the black market.
- solutionyogi 17y agoI don't think you can compare black market with piracy. In black market, you do not get product for free. In fact, most of the time, you may through your nose for the product e.g. drugs/organs. Show me an example where black market sells product at price which equals to marginal cost of production.
- rbanffy 17y agoSoftware pirates selling their stuff on the street? One can get a copy of the Windows 7 Ultimate (or whatever it's called) for about US$5 a 10 minute walk from my house. It's still a black market, despite it being active during working hours, 6 days a week.