This is one of the more interesting policy questions on the web. Our search engine crawls a lot of blogs and what not on the web, criminals who want to find unpatched wordpress sites try to acrape our crawl by sending automated (scripted) queries to find them. We have developed a number of defenses over the years and pretty regularly ban them[1]. Here is the weird part though, if they hired 300 people on mechanical t…
I think there is a great meta-question in here, about business models for digital data and software. Here you have a great case study, about an organization that tried to do a volunteer model, and it didn't work. Then they pivoted to a commercial model, but fundamentally they still believe in a free tier. But they have to cripple that free tier pretty thoroughly, and even still people abuse it. I have a product I'm w…
What is the difference in value between a CD with the latest release of Ubuntu burned on it, and the download? download and a bootable Flash drive?
There is a great experiment you can run which goes like this; At one end of an athletic field, place a chess board with a queen on it on one of the squares. At the other end of the field have a table where people can get a quest. Offer to pay a person $5 if they will walk to the end of the field, note where the queen is, and come back and tell the quest giver. At the mid point of the field set up an information seller. They offer to sell you the location of the queen for anywhere between 20 and 80% of the reward price.
This simple experiment lets you see all sort of mechanisms in play that control information value. On the one hand you can see the range of values people apply to their own time (acquisition cost), their willingness to retain value (do they then go back mid-queue at the sign up table and start offering to sell the information for some fraction of the price to anyone?) At what threshold to people start trying to break the rules (a notion that is similar to price inelasticity but has a component like the 'black market demand').
Interesting questions to be sure.