What Do Econ 1 Students Need to Remember Second Most from the Course? - http://delong.typepad.com/sdj...
Dec 6, 2010
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This goes well with his previous post, on the most important thing, which is that a market is an awesome way to allocate rival, excludable goods.
- Daniel Dulitz
As an aside, attempting to apply standard market rules to digital goods won't work, as those are neither rival nor excludable.
- Tudor Bosman
Exactly, that's the whole problem with DRM. Copyright/DRM can make digital goods "more" excludable, but nothing can make them rival, so markets will fail at efficiently allocating resources if all we have are copyright and DRM.
- Daniel Dulitz