ABSTRACT
Illegal online file sharing (IOF) involves substantial psychological issues that implicate elements of cognition, perceptions of fairness, value of time, risk aversion, and many other behavioral issues. The lack of efficient methods of controlling downloads of digital content is compounded by suboptimal pricing of digital content. This chapter introduces hypothesis of economic psychology factors that directly or indirectly cause IOF and, by doing so, fills some critical gaps in the existing literature (particularly empirical research in psychology, law and economics, criminology, and operations research). More importantly, the theories introduced in this chapter can form the basis for (1) determining whether to handle illegal file sharing as a criminal matter or civil matter and for determining the best forum for such claims (e.g., courts vs. arbitration vs. government administrative agencies); (2) allocation of resources to the investigation and/or prosecution of illegal online file sharing; and (3) the analysis of procedural and substantive due process in the prosecution of illegal file sharing claims in courts and government administrative agencies.
