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h1. Hostage economics

That's one very profitable economy model: your customers are your hostages
and you can sell anything to them.

h2. Examples

Media corporations. They profit from piracy: First, people get free samples
of their "goods", second, they violate the law, which allows to raise
content prices, severely punish ones that seriously affect business and
builds up a sense of guilt in "pirates", which makes them spend more money.

The similar tactics are employed by Russian gangovernment. If you want to make
business in Russia, you are subject to a lot of terms and regulations,
mostly obsolete. They are not really enforced, in fact you are supposed to
violate them, you just need to pay small bribes to authorities. But that
makes you a criminal, and if you don't behave as gangoverment wants you to,
they can punish you according to law.

h2. Ways out

1. Obey laws. This may be very hard, and if you skip the slightest one, you'll
be executed, and you certainly won't be price-effective. But your enemies
won't be able to touch you, if you succeed. If there is more than one of
you, you may force them to seriously lose profits and change the tactic.

Change laws, show public disobediance. As with previous way, if there's
enough of you, you can make sense and change laws. But be prepared to die a
hero if you are captured.

h2. Conclusion

There is no research yet showing that either way is easier. But the latter
appears to be more constructive, but more dangerous.

By Voker57 on 2010-12-28 21:28:19 +0000