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Why is online piracy ethically different from
theft?
A vignette experiment.
Wojciech Hardy, Michał Krawczyk, Joanna Tyrowicz
Group for Research in APplied Economics
Introduction: If you download you’re a thief!
„When you go online and download songs without permission, you
are stealing. The illegal downloading of music is just as wrong as
shoplifting from a local convenience store (…)”
---RIAA, Official stance on piracy (online until 2011)
3
„Piracy is theft, and pirates are thieves, plain and simple.
Downloading a movie off of the Internet is the same as taking a
DVD off a store shelf without paying for it.”
---MPAA, What is Internet piracy? (online until 2010)
Introduction: If you download you’re a thief!
„When you go online and download songs without permission, you
are stealing. The illegal downloading of music is just as wrong as
shoplifting from a local convenience store (…)”
---RIAA, Official stance on piracy (online until 2011)
3
„It's as if we were advising people on how to steal from
supermarkets (...) Everything's alright in the legal terms, but,
without any doubts, this IS stealing from artists and - I repeat - is
causing harm to culture.”
--- Bogusław Pluta, director of ZPAV (2012)
„Piracy is theft, and pirates are thieves, plain and simple.
Downloading a movie off of the Internet is the same as taking a
DVD off a store shelf without paying for it.”
---MPAA, What is Internet piracy? (online until 2010)
And the views of the society?
Definitely not the same percentage of people that steal from shops
(at least I hope so ).
So what is it that actually makes the difference?
4
Source: http://piracy.americanassembly.org/wp-content/uploads/2011/11/AA-Research-Note-Infringement-and-
Enforcement-November-2011.pdf
Common reasons for piracy:
5





Common reasons for piracy:
5
 There is no loss if you copy something.




Common reasons for piracy:
5
 There is no loss if you copy something.
 Why not copy if there’s no available alternative.



Common reasons for piracy:
5
 There is no loss if you copy something.
 Why not copy if there’s no available alternative.
 They are just some big capitalist companies, who won’t receive my few dollars.


Common reasons for piracy:
5
 There is no loss if you copy something.
 Why not copy if there’s no available alternative.
 They are just some big capitalist companies, who won’t receive my few dollars.
 DRMs are a nuisance to buyers, and pose no barrier to pirates.

Common reasons for piracy:
5
 There is no loss if you copy something.
 Why not copy if there’s no available alternative.
 They are just some big capitalist companies, who won’t receive my few dollars.
 DRMs are a nuisance to buyers, and pose no barrier to pirates.
 It’s much easier when you don’t have to look the victim in the eye.
To address the question:
6
Which difference makes the difference?





To address the question:
6
Which difference makes the difference?
Hypothetical stories about Johnny, who committed various,
questionable acts to acquire a TV series.




To address the question:
6
Which difference makes the difference?
Hypothetical stories about Johnny, who committed various,
questionable acts to acquire a TV series.
Stories are based on six dimensions often mentioned in the
debate around piracy:
 Loss, Physicality, Alternative, Peer, Sharing, Protection


To address the question:
6
Which difference makes the difference?
Hypothetical stories about Johnny, who committed various,
questionable acts to acquire a TV series.
Stories are based on six dimensions often mentioned in the
debate around piracy:
 Loss, Physicality, Alternative, Peer, Sharing, Protection
Responders rate the stories’ acceptability.

To address the question:
6
Which difference makes the difference?
Hypothetical stories about Johnny, who committed various,
questionable acts to acquire a TV series.
Stories are based on six dimensions often mentioned in the
debate around piracy:
 Loss, Physicality, Alternative, Peer, Sharing, Protection
Responders rate the stories’ acceptability.
Additional questions on personal behaviour and
demographics.
Let’s take a few things into account first
7
Vignette experiments








Let’s take a few things into account first
7
Vignette experiments
 Hypothetical situations that the responders judge, evaluate, etc.







Let’s take a few things into account first
7
Vignette experiments
 Hypothetical situations that the responders judge, evaluate, etc.
 Very popular when analyzing controversial choices.






Let’s take a few things into account first
7
Vignette experiments
 Hypothetical situations that the responders judge, evaluate, etc.
 Very popular when analyzing controversial choices.
 Types of theft – Green (2012).





Let’s take a few things into account first
7
Vignette experiments
 Hypothetical situations that the responders judge, evaluate, etc.
 Very popular when analyzing controversial choices.
 Types of theft – Green (2012).
 Sometimes on piracy, but mostly software and not culture.
On cultural goods piracy



Let’s take a few things into account first
7
Vignette experiments
 Hypothetical situations that the responders judge, evaluate, etc.
 Very popular when analyzing controversial choices.
 Types of theft – Green (2012).
 Sometimes on piracy, but mostly software and not culture.
On cultural goods piracy
 Music piracy vs shoplifting (difference explained by law
deterrence).


Let’s take a few things into account first
7
Vignette experiments
 Hypothetical situations that the responders judge, evaluate, etc.
 Very popular when analyzing controversial choices.
 Types of theft – Green (2012).
 Sometimes on piracy, but mostly software and not culture.
On cultural goods piracy
 Music piracy vs shoplifting (difference explained by law
deterrence).
 Acquisition of a `test preparation tool’ (physicality and
exclusion).

Let’s take a few things into account first
7
Vignette experiments
 Hypothetical situations that the responders judge, evaluate, etc.
 Very popular when analyzing controversial choices.
 Types of theft – Green (2012).
 Sometimes on piracy, but mostly software and not culture.
On cultural goods piracy
 Music piracy vs shoplifting (difference explained by law
deterrence).
 Acquisition of a `test preparation tool’ (physicality and
exclusion).
 `Sharing’ (e.g. at a party) is more acceptable than downloading.
8
Let’s take a few things into account first
How are pirates different?
Higher preference for risky behaviour
Less respect for the rules
BUT: willingness to pirate is unrelated to willingness to
shoplifting
Individual judgement is often harsher than perceived social
norms.
 Although the latter may influence the former.
Is piracy considered an ethical problem?
9
The questionnaire









9
The questionnaire
 Rewards offered as an encouragement.








9
The questionnaire
 Rewards offered as an encouragement.
 18 stories that were built upon the six dimensions.







9
The questionnaire
 Rewards offered as an encouragement.
 18 stories that were built upon the six dimensions.
 Randomized order of screens and stories within.






9
The questionnaire
 Rewards offered as an encouragement.
 18 stories that were built upon the six dimensions.
 Randomized order of screens and stories within.
Treatments (random assignment):





9
The questionnaire
 Rewards offered as an encouragement.
 18 stories that were built upon the six dimensions.
 Randomized order of screens and stories within.
Treatments (random assignment):
 Treatment I: Ethical Judgement (EJ)




9
The questionnaire
 Rewards offered as an encouragement.
 18 stories that were built upon the six dimensions.
 Randomized order of screens and stories within.
Treatments (random assignment):
 Treatment I: Ethical Judgement (EJ)
 Treatment II: Social Norms (SN)



9
The questionnaire
 Rewards offered as an encouragement.
 18 stories that were built upon the six dimensions.
 Randomized order of screens and stories within.
Treatments (random assignment):
 Treatment I: Ethical Judgement (EJ)
 Treatment II: Social Norms (SN)
 Treatment III: Incentivized Social Norms (ISN) (Krupka-Weber, 2013)


9
The questionnaire
 Rewards offered as an encouragement.
 18 stories that were built upon the six dimensions.
 Randomized order of screens and stories within.
Treatments (random assignment):
 Treatment I: Ethical Judgement (EJ)
 Treatment II: Social Norms (SN)
 Treatment III: Incentivized Social Norms (ISN) (Krupka-Weber, 2013)
 Rating scale: 1 – Totaly unacceptable; 4 – Fully acceptable.
 Note that there is no interpretable middle.
10
Story examples
 A friend of Johnny's forgot to log out from his e-mail box, after
using Johnny's computer. While closing the web browser, Johnny
spotted that the mail currently displayed on his screen contained a
one-use only access code for a payable site with TV series in High
Definition. Johnny quickly copied the code, and after returning
home used it on a season of a popular TV series.
 Not physical; Loss; Peer; No alternative; No sharing; Protection
 A new season of a popular, high budget, American TV series is
available in kiosks as an add-on for a magazine priced 7.99 PLN.
However, Johnny downloaded the series from another source, for
free.
 Not physical; No loss; Not a peer; Alternative; No sharing; No protection.
Sample – Two studies
11
Study 1
 Students of the University of Warsaw (around 50% Economics)
 Young age (~24)
 Balanced gender (~60% female)
 N=338
Study 2
 Facebook profiles of non-for-profit organizations
 Slightly older than Study I (~28)
 Mostly female (~68%)
 N=129
12
Methodology
Ordered logit regressions:
Answer = βDimensions + γControls + ε
1) Regressions by treatment groups.
2) (Non)downloaders and (non)uploaders.
3) Subsample of deeds commited online.
4) Robustness checks.
Results: The treatments
13Note: * p < 0.05; ** p < 0.01
Results: The treatments
13Note: * p < 0.05; ** p < 0.01
Results: The groups (downloaders)
14Note: * p < 0.05; ** p < 0.01
Results: The groups (downloaders)
14Note: * p < 0.05; ** p < 0.01
Results: The groups (downloaders)
14Note: * p < 0.05; ** p < 0.01
Results: The groups (uploaders)
15Note: * p < 0.05; ** p < 0.01
Results: The groups (uploaders)
15Note: * p < 0.05; ** p < 0.01
Results: The groups (uploaders)
15Note: * p < 0.05; ** p < 0.01
16
Results (Internet only)
Note: * p < 0.05; ** p < 0.01
16
Results (Internet only)
Note: * p < 0.05; ** p < 0.01
16
Results (Internet only)
Note: * p < 0.05; ** p < 0.01
17
Conclusions











17
Conclusions
The importance of dimensions:
 Physicality (Most important)
 Loss
 Protection
 Peer
 Sharing
 Alternative (Insignificant)




17
Conclusions
The importance of dimensions:
 Physicality (Most important)
 Loss
 Protection
 Peer
 Sharing
 Alternative (Insignificant)
Individual opinion is harsher than perceived social norms.



17
Conclusions
The importance of dimensions:
 Physicality (Most important)
 Loss
 Protection
 Peer
 Sharing
 Alternative (Insignificant)
Individual opinion is harsher than perceived social norms.
Conscious/sensitive downloaders.


17
Conclusions
The importance of dimensions:
 Physicality (Most important)
 Loss
 Protection
 Peer
 Sharing
 Alternative (Insignificant)
Individual opinion is harsher than perceived social norms.
Conscious/sensitive downloaders.
Same dimensions important online.

17
Conclusions
The importance of dimensions:
 Physicality (Most important)
 Loss
 Protection
 Peer
 Sharing
 Alternative (Insignificant)
Individual opinion is harsher than perceived social norms.
Conscious/sensitive downloaders.
Same dimensions important online.
Policies should be focused on particular aspects of piracy.
Thank you for your attention!
Author: Wojciech Hardy
e-mail: whardy@wne.uw.edu.pl
More about our research on:
http://grape.uw.edu.pl/ipiracy
Twitter: @GrapeUW

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WH @ IEA2014

  • 1. Why is online piracy ethically different from theft? A vignette experiment. Wojciech Hardy, Michał Krawczyk, Joanna Tyrowicz Group for Research in APplied Economics
  • 2. Introduction: If you download you’re a thief! „When you go online and download songs without permission, you are stealing. The illegal downloading of music is just as wrong as shoplifting from a local convenience store (…)” ---RIAA, Official stance on piracy (online until 2011) 3 „Piracy is theft, and pirates are thieves, plain and simple. Downloading a movie off of the Internet is the same as taking a DVD off a store shelf without paying for it.” ---MPAA, What is Internet piracy? (online until 2010)
  • 3. Introduction: If you download you’re a thief! „When you go online and download songs without permission, you are stealing. The illegal downloading of music is just as wrong as shoplifting from a local convenience store (…)” ---RIAA, Official stance on piracy (online until 2011) 3 „It's as if we were advising people on how to steal from supermarkets (...) Everything's alright in the legal terms, but, without any doubts, this IS stealing from artists and - I repeat - is causing harm to culture.” --- Bogusław Pluta, director of ZPAV (2012) „Piracy is theft, and pirates are thieves, plain and simple. Downloading a movie off of the Internet is the same as taking a DVD off a store shelf without paying for it.” ---MPAA, What is Internet piracy? (online until 2010)
  • 4. And the views of the society? Definitely not the same percentage of people that steal from shops (at least I hope so ). So what is it that actually makes the difference? 4 Source: http://piracy.americanassembly.org/wp-content/uploads/2011/11/AA-Research-Note-Infringement-and- Enforcement-November-2011.pdf
  • 5. Common reasons for piracy: 5     
  • 6. Common reasons for piracy: 5  There is no loss if you copy something.    
  • 7. Common reasons for piracy: 5  There is no loss if you copy something.  Why not copy if there’s no available alternative.   
  • 8. Common reasons for piracy: 5  There is no loss if you copy something.  Why not copy if there’s no available alternative.  They are just some big capitalist companies, who won’t receive my few dollars.  
  • 9. Common reasons for piracy: 5  There is no loss if you copy something.  Why not copy if there’s no available alternative.  They are just some big capitalist companies, who won’t receive my few dollars.  DRMs are a nuisance to buyers, and pose no barrier to pirates. 
  • 10. Common reasons for piracy: 5  There is no loss if you copy something.  Why not copy if there’s no available alternative.  They are just some big capitalist companies, who won’t receive my few dollars.  DRMs are a nuisance to buyers, and pose no barrier to pirates.  It’s much easier when you don’t have to look the victim in the eye.
  • 11. To address the question: 6 Which difference makes the difference?     
  • 12. To address the question: 6 Which difference makes the difference? Hypothetical stories about Johnny, who committed various, questionable acts to acquire a TV series.    
  • 13. To address the question: 6 Which difference makes the difference? Hypothetical stories about Johnny, who committed various, questionable acts to acquire a TV series. Stories are based on six dimensions often mentioned in the debate around piracy:  Loss, Physicality, Alternative, Peer, Sharing, Protection  
  • 14. To address the question: 6 Which difference makes the difference? Hypothetical stories about Johnny, who committed various, questionable acts to acquire a TV series. Stories are based on six dimensions often mentioned in the debate around piracy:  Loss, Physicality, Alternative, Peer, Sharing, Protection Responders rate the stories’ acceptability. 
  • 15. To address the question: 6 Which difference makes the difference? Hypothetical stories about Johnny, who committed various, questionable acts to acquire a TV series. Stories are based on six dimensions often mentioned in the debate around piracy:  Loss, Physicality, Alternative, Peer, Sharing, Protection Responders rate the stories’ acceptability. Additional questions on personal behaviour and demographics.
  • 16. Let’s take a few things into account first 7 Vignette experiments        
  • 17. Let’s take a few things into account first 7 Vignette experiments  Hypothetical situations that the responders judge, evaluate, etc.       
  • 18. Let’s take a few things into account first 7 Vignette experiments  Hypothetical situations that the responders judge, evaluate, etc.  Very popular when analyzing controversial choices.      
  • 19. Let’s take a few things into account first 7 Vignette experiments  Hypothetical situations that the responders judge, evaluate, etc.  Very popular when analyzing controversial choices.  Types of theft – Green (2012).     
  • 20. Let’s take a few things into account first 7 Vignette experiments  Hypothetical situations that the responders judge, evaluate, etc.  Very popular when analyzing controversial choices.  Types of theft – Green (2012).  Sometimes on piracy, but mostly software and not culture. On cultural goods piracy   
  • 21. Let’s take a few things into account first 7 Vignette experiments  Hypothetical situations that the responders judge, evaluate, etc.  Very popular when analyzing controversial choices.  Types of theft – Green (2012).  Sometimes on piracy, but mostly software and not culture. On cultural goods piracy  Music piracy vs shoplifting (difference explained by law deterrence).  
  • 22. Let’s take a few things into account first 7 Vignette experiments  Hypothetical situations that the responders judge, evaluate, etc.  Very popular when analyzing controversial choices.  Types of theft – Green (2012).  Sometimes on piracy, but mostly software and not culture. On cultural goods piracy  Music piracy vs shoplifting (difference explained by law deterrence).  Acquisition of a `test preparation tool’ (physicality and exclusion). 
  • 23. Let’s take a few things into account first 7 Vignette experiments  Hypothetical situations that the responders judge, evaluate, etc.  Very popular when analyzing controversial choices.  Types of theft – Green (2012).  Sometimes on piracy, but mostly software and not culture. On cultural goods piracy  Music piracy vs shoplifting (difference explained by law deterrence).  Acquisition of a `test preparation tool’ (physicality and exclusion).  `Sharing’ (e.g. at a party) is more acceptable than downloading.
  • 24. 8 Let’s take a few things into account first How are pirates different? Higher preference for risky behaviour Less respect for the rules BUT: willingness to pirate is unrelated to willingness to shoplifting Individual judgement is often harsher than perceived social norms.  Although the latter may influence the former. Is piracy considered an ethical problem?
  • 26. 9 The questionnaire  Rewards offered as an encouragement.        
  • 27. 9 The questionnaire  Rewards offered as an encouragement.  18 stories that were built upon the six dimensions.       
  • 28. 9 The questionnaire  Rewards offered as an encouragement.  18 stories that were built upon the six dimensions.  Randomized order of screens and stories within.      
  • 29. 9 The questionnaire  Rewards offered as an encouragement.  18 stories that were built upon the six dimensions.  Randomized order of screens and stories within. Treatments (random assignment):     
  • 30. 9 The questionnaire  Rewards offered as an encouragement.  18 stories that were built upon the six dimensions.  Randomized order of screens and stories within. Treatments (random assignment):  Treatment I: Ethical Judgement (EJ)    
  • 31. 9 The questionnaire  Rewards offered as an encouragement.  18 stories that were built upon the six dimensions.  Randomized order of screens and stories within. Treatments (random assignment):  Treatment I: Ethical Judgement (EJ)  Treatment II: Social Norms (SN)   
  • 32. 9 The questionnaire  Rewards offered as an encouragement.  18 stories that were built upon the six dimensions.  Randomized order of screens and stories within. Treatments (random assignment):  Treatment I: Ethical Judgement (EJ)  Treatment II: Social Norms (SN)  Treatment III: Incentivized Social Norms (ISN) (Krupka-Weber, 2013)  
  • 33. 9 The questionnaire  Rewards offered as an encouragement.  18 stories that were built upon the six dimensions.  Randomized order of screens and stories within. Treatments (random assignment):  Treatment I: Ethical Judgement (EJ)  Treatment II: Social Norms (SN)  Treatment III: Incentivized Social Norms (ISN) (Krupka-Weber, 2013)  Rating scale: 1 – Totaly unacceptable; 4 – Fully acceptable.  Note that there is no interpretable middle.
  • 34. 10 Story examples  A friend of Johnny's forgot to log out from his e-mail box, after using Johnny's computer. While closing the web browser, Johnny spotted that the mail currently displayed on his screen contained a one-use only access code for a payable site with TV series in High Definition. Johnny quickly copied the code, and after returning home used it on a season of a popular TV series.  Not physical; Loss; Peer; No alternative; No sharing; Protection  A new season of a popular, high budget, American TV series is available in kiosks as an add-on for a magazine priced 7.99 PLN. However, Johnny downloaded the series from another source, for free.  Not physical; No loss; Not a peer; Alternative; No sharing; No protection.
  • 35. Sample – Two studies 11 Study 1  Students of the University of Warsaw (around 50% Economics)  Young age (~24)  Balanced gender (~60% female)  N=338 Study 2  Facebook profiles of non-for-profit organizations  Slightly older than Study I (~28)  Mostly female (~68%)  N=129
  • 36. 12 Methodology Ordered logit regressions: Answer = βDimensions + γControls + ε 1) Regressions by treatment groups. 2) (Non)downloaders and (non)uploaders. 3) Subsample of deeds commited online. 4) Robustness checks.
  • 37. Results: The treatments 13Note: * p < 0.05; ** p < 0.01
  • 38. Results: The treatments 13Note: * p < 0.05; ** p < 0.01
  • 39. Results: The groups (downloaders) 14Note: * p < 0.05; ** p < 0.01
  • 40. Results: The groups (downloaders) 14Note: * p < 0.05; ** p < 0.01
  • 41. Results: The groups (downloaders) 14Note: * p < 0.05; ** p < 0.01
  • 42. Results: The groups (uploaders) 15Note: * p < 0.05; ** p < 0.01
  • 43. Results: The groups (uploaders) 15Note: * p < 0.05; ** p < 0.01
  • 44. Results: The groups (uploaders) 15Note: * p < 0.05; ** p < 0.01
  • 45. 16 Results (Internet only) Note: * p < 0.05; ** p < 0.01
  • 46. 16 Results (Internet only) Note: * p < 0.05; ** p < 0.01
  • 47. 16 Results (Internet only) Note: * p < 0.05; ** p < 0.01
  • 49. 17 Conclusions The importance of dimensions:  Physicality (Most important)  Loss  Protection  Peer  Sharing  Alternative (Insignificant)    
  • 50. 17 Conclusions The importance of dimensions:  Physicality (Most important)  Loss  Protection  Peer  Sharing  Alternative (Insignificant) Individual opinion is harsher than perceived social norms.   
  • 51. 17 Conclusions The importance of dimensions:  Physicality (Most important)  Loss  Protection  Peer  Sharing  Alternative (Insignificant) Individual opinion is harsher than perceived social norms. Conscious/sensitive downloaders.  
  • 52. 17 Conclusions The importance of dimensions:  Physicality (Most important)  Loss  Protection  Peer  Sharing  Alternative (Insignificant) Individual opinion is harsher than perceived social norms. Conscious/sensitive downloaders. Same dimensions important online. 
  • 53. 17 Conclusions The importance of dimensions:  Physicality (Most important)  Loss  Protection  Peer  Sharing  Alternative (Insignificant) Individual opinion is harsher than perceived social norms. Conscious/sensitive downloaders. Same dimensions important online. Policies should be focused on particular aspects of piracy.
  • 54. Thank you for your attention! Author: Wojciech Hardy e-mail: whardy@wne.uw.edu.pl More about our research on: http://grape.uw.edu.pl/ipiracy Twitter: @GrapeUW