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?
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Source: http://piracy.americanassembly.org/wp-content/uploads/2011/11/AA-Research-Note-Infringement-and-
Enforcement-November-2011.pdf

5. Common reasons for piracy:
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6. Common reasons for piracy:
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 There is no loss if you copy something.
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7. Common reasons for piracy:
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 There is no loss if you copy something.
 Why not copy if there’s no available alternative.
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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.
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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.
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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:
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Which difference makes the difference?
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12. To address the question:
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Which difference makes the difference?
Hypothetical stories about Johnny, who committed various,
questionable acts to acquire a TV series.
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13. To address the question:
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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
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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.
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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
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Vignette experiments
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17. Let’s take a few things into account first
7
Vignette experiments
 Hypothetical situations that the responders judge, evaluate, etc.
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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.
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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).
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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
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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).
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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).
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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?

25. 9
The questionnaire
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26. 9
The questionnaire
 Rewards offered as an encouragement.
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27. 9
The questionnaire
 Rewards offered as an encouragement.
 18 stories that were built upon the six dimensions.
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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.
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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):
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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)
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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)
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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)
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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
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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

48. 17
Conclusions
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49. 17
Conclusions
The importance of dimensions:
 Physicality (Most important)
 Loss
 Protection
 Peer
 Sharing
 Alternative (Insignificant)
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50. 17
Conclusions
The importance of dimensions:
 Physicality (Most important)
 Loss
 Protection
 Peer
 Sharing
 Alternative (Insignificant)
Individual opinion is harsher than perceived social norms.
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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.
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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.
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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