if you had seen french revolutionaries in 1789, you would want to spray them with insecticide. it was a total stampede of barbarians. but then, in 2-3 years' time, it has become the very thing that awarded your sorry ass with the modern social guidelines about human rights, civil conduct we know today. ...and in one more year the Great Terror began. Indeed, we can thank the revolutionaries for introducing the word "terrorism" to our modern vocabulary.

That means that prices will simply be raised until many consumers simply cannot afford it (arguments like the original articles claims about economies of scale simply indicate lack of economic understanding; less piracy would mean _higher_ price, monopoly pricing limits are completely driven by customer dropoff, economies of scale apply to competitively enforced pricing).

Yup. The claims that piracy results in higher prices are generally false. It results in lower prices for any given piece of software. Its real negative consequence is the result of the lower prices -- some niche software becomes uneconomical to develop since it cannot be sold for a price that will recoup development costs. So we get cheaper mass-market games and a dearth of niche games because of pirates (it seems that no game is too obscure to be pirated). The funny thing is that those who complain about the homogenization of culture by the RIAA may actually be contributing to it by making it unprofitable to sell lesser-known artists (or pieces of software) at any price.

One last comment: There might be a price rise in some areas, where two pieces of software compete against one another. If both are pirated, the duopoly might collapse into a monopoly, with concomitant higher pricing. In theory, a new entrant might emerge -- but it may be that everyone knows duopoly pricing is unprofitable given the competition from pirates.