Re: Honor Systems
That sounds like a really messed up system. I agree that corporations can be expected to never abide by an Honor System if not doing so is +$EV. Falls into line with the mindset that doesn't recall a defective product if the cost of the recall is greater than the cost of lawsuits by people they killed or maimed. They are in the business of turning a profit and can be expected to maximize that profit regardless of the effect on others.
I wonder if your royalty system would be crap even if no corporations were involved. Many individuals would have no problem scamming "the system" (as in the case of filesharing, et al), but might hesitate if the people they cheated were ones they actually knew and had hired to make a commerical. I'm guessing there'd be a sharp divide between those who always paid and those who never did.
|