Incentives to Share in the Digital Economy

As noted by Greg Taylor in Chapter 18 of this volume, scarcity is a problematic concept in the digital age. The possibility of post-scarcity is not only a challenge to classical economics—the science of allocating scarce resources. The proliferation of what are called non-rivalrous informational goods is also a challenge to a capitalist economic system in which scarcity becomes a basis for price setting. This chapter by Matthew David provides an alternative perspective on the possibility of a post-scarcity, sharing-based economy in non-rivalrous informational goods, such as music. He explores the dimensions of incentive, efficiency, and efficacy by which property and market mechanisms have traditionally been justified in capitalist societies. David examines the distinction between two forms of sharing that he calls reciprocal peer co-production, and generalized peer-to-peer redistribution. The chapter conveys a valuable understanding of the rewards and incentives associated with sharing-based alternatives to more traditional market mechanisms.