A new TED talk was put out today (though it won’t be today anymore by the time you read this) by Amanda Palmer entitled, “The Art of Asking”, which you can watch here. If the comments on the YouTube page of the talk are to be believed, it truly was an inspiring affair. Professional cynic that I am, the talk didn’t do much to inspire me; at least not in the way that Amanda probably intended it to. Now, for those of who you don’t know her, Amanda is (primarily, I think) famous for her music in The Dresden Dolls. One of the main thrusts of her talk centers around the question she poses towards the end: how do we let people pay for music, rather than how do we get people to pay for music. Part of Amanda’s answer to this question was to allow people to download her music on her website and let them pay whatever price they wanted for the download. So, if someone downloaded Amanda’s music from her site, they had the option of paying $0, $1, $5, $10, $15, $20, or $100 for it. Amanda further suggests that she views this as a sort of “trust” in her fans, presumably because she had given people the option of paying nothing, which is the option most economists would consider the “rational” one. While her talk is delivered with a strong emotional tone and the message is ostensibly positive, Amanda is still a human, so my guess is that there’s more to her trust than meets the eye.
Admittedly, I don’t know much about Amanda beyond what I just heard. Though I am familiar with her music to some degree, I’ve never followed her personal life at all. Here’s what I do know: a quick browsing of her website shows me that while she will indeed allow people to choose their own price for her music and download it, she doesn’t seem to have that same policy towards shirts, CDs, vinyl, posters, art books, or the shipping and handling required to send any of them out. Something (the tour section of her website) also tells me the venues she plays at – which I’m imagining represent a substantial proportion of her income – don’t allow anyone to come in to see the show and pay whatever they feel like for tickets. It would seem that telling people, rather than asking them, to pay is the norm; not her exception. This raises the inevitably question: to what extent does the choose-your-own-price option reflect a genuine leap of faith, and how much of her TED talk is actually cheap talk?
Cheap talk is just what it sounds like: it’s a signal that is easy to produce. Like all signals, it functions to attempt and persuade another individual to change their behavior. Cheap talk, however, is of very questionable value precisely because it’s so easy to manufacture. For instance, let’s say that a man tries to convince a woman at a bar to have sex with him. He tells her that he’s fabulously wealthy, will remain faithful to her throughout his life, and see to it that she wants for nothing if she agrees. Tempting offer no doubt, but what’s guaranteeing that any of the information that the man is sending is true? It costs the man almost nothing to say the words, and once the two have sex, he’s free to go back on his word without penalty. However, if that same offer is made after a month of courtship where the man has paid for multiple dates, consistently dressed in expensive clothes, and accompanies the offer with a diamond ring, wedding ceremony, and legal contract that entitles the woman to half of everything he owns, we’ve stepped out the realm of cheap talk into costly signals. Because of those high costs, the signal is much harder to fake, so its honesty can be better guaranteed.
Now Amanda would like us to think that her choose-your-own-price option represents a costly signal of trust towards her fans. Indeed, she may well consciously believe that it is one, just as most people consciously believe they’re better than average at things that the majority of other people or less likely to have bad things happen to them. Since her personal, potentially self-serving feelings about the whole thing don’t necessarily reflect reality, this brings us back to the “how costly is her gesture?” question. As the internet stands right now, whether a musician provides the option for free downloading on their own website or not, the option likely exists somewhere. It took me all of three seconds to find a list of websites where I could have downloaded Amanda’s album for free anyway. In other words, if someone wanted to download her album without paying, they likely could have. This suggests that her pay-nothing option isn’t as trusting as it initially comes across. Not only is she not creating that option where it didn’t exist before, but, in all likelihood, it would exist regardless of whether she wanted it to or not. Counting this as “trust” is a bit like my saying that I “trust” gravity to do what it does; I don’t really have a choice in the matter.
On top of that preexisting problem of music downloads already being available, there’s another: to the best of my knowledge, the costs to letting someone download her album are minimal. While one could argue about how much money she would lose on account of people not paying, I’m talking more about the physical costs of sending the information to someone’s computer. Since there really is no cost there – and because the option to download for free would exist with or without Amanda’s seal of approval – Amanda is essentially undertaking zero risk in providing her ostensibly-trusting option. It requires no investment and no need for desire. Without that risk, assessing the credibility of the signal becomes very difficult, as was the case with the sex example above. How trusting would Amanda be when there are some actual risks involved? When she has the ability to create that trusting option, will she? This is where Amanda’s other merchandise comes to the rescue.
Things like shirts, posters, and physical copies of CDs cost actual money to produce, and the option to get these things for free doesn’t already exist. Nothing is stopping Amanda from paying out of pocket to have these items made and allowing her fans to pay whatever they want for them (from $0 a shirt a $100, for instance), yet this isn’t what she does. Once actual risk enters the picture – once Amanda needs to make a real initial investment – her trust sees to dry up in a hurry. Apparently, she doesn’t trust her fans enough to adequately compensate her on a shirt and the shipping cost when she has the option to. One could argue, I suppose, that a handful of amoral people could, in principle, ruin her financially by ordering dozens or hundreds of shirts from her for free online, and that same risk isn’t posed by the downloading of a CD. That would be a fair point, except there are multiple ways around it: the requirement of a credit card for the purchase (whatever the purchase price ended up being), a limit on the number of free or cheap items, or the option available to pay whatever you want for the merchandise, but only at live concerts. Admittedly, I don’t know if she does the last one; I just suspect she doesn’t offer it as default option.
Forgetting about the merchandise, we could also discuss ticket prices to the shows as well. A quick browsing of the links for tickets on her tour schedule shows tickets that can range from $15 to $60. Now of course ticket prices aren’t being set by Amanda herself, but, then again, venues aren’t set in stone either. Presumably Amanda could, if she wanted to, only schedule herself to play at venues where ticket prices could be determined (at least largely) by the willingness of the people who show up to pay. I’m sure there are plenty of venues – though not necessarily traditional ones – that would at least consider such an offer. Rather than take this approach, however, Amanda’s “art of asking” seems to involve first demanding people pay full price for tickets and merchandise and, in addition, asking them to then pay more, whether that more came in the form of additional money placed into a hat she passes around the crowd, giving her food, places to stay, practice space, or other items of interest.
Now none of this is to say that Amanda is a bad person. As I said, I don’t know nearly enough about her to make that judgment one way or the other. This is merely to point out that the “trust” Amanda has in her fans certainly has its limits – many of them – as pretty much anyone’s does. That’s just the point though; there doesn’t seem to be anything particularly special going on here. Despite there being nothing special about it, Amanda seems to be trying to play it off as if it’s some great exercise in trust. The impossible-to-assess pretense is the part of the talk that inspired this post. There’s also the matter of the kickstarter she mentions. Amanda asked for $100,000 on kickstarter and ended up making over a million. Now I don’t find anything particularly egregious about that; if her fans wanted to support her, nothing was stopping them. What I did find curious, though, what her analysis of how that money would be spent. It seemed that she had a legitimate need for almost the full million. While that’s fine if she does, what’s curious about that was is if she needed the full million, why didn’t she ask for, well, the full million? Why only ask for the hundred thousand that clearly would have been grossly insufficient for her plans? Something about that analysis strikes me as off as well. Then again, if a pretense of trust is easy to manufacture, so is a pretense of need.