Demand for “authentic” song

d_a=f(p_a, tc_a, v_a, q_a, ll_a, a_a)

Demand for pirated song

d_p=f(p_p, tc_p, v_p, q_p, ll_p, a_p)

where:

p_i= price

tc_i= transaction costs

v_i= perceived probability of getting a virus

q_i=perceived quality

ll_i=perceived probability of legal liability

a_i=”altruism” toward supplier

and

i=a, signifies authentic

i=p, signifies pirated