The paper analyses the payment behaviour of customers of the online music label Magnatune. Customers may pay what they want for albums, as long as the payment is within a given price range ($5-$18). Magnatune's comprehensive pre-purchase access facilitates music discovery and allows an informed...

The paper analyses the payment behaviour of customers of the online music label Magnatune. Customers may pay what they want for albums, as long as the payment is within a given price range ($5-$18). Magnatune’s comprehensive pre-purchase access facilitates music discovery and allows an...

The paper analyses the behaviour of customers of the online music label Magnatune. Customers may pay what they want for music albums, as long as the payment is within a given price range ($5-$18). We study the relationship between artists/labels and customers and use a moral hazard model for our...