New website allows users to trade CDs

Yet another online market has been created, this time its for music. Don't get the gallows out yet, this one keep so-called "music pirates" from plundering. Its called Lala.com and it is a CD trading market run completely over the internet. How it works is that traders post a list of the CDs that they are willing to trade on the site, and those interested in having a particular CD give the owner a notice. The reciever then pays $1 to Lala.com and the requested CD is sent by mail. However, in order to get a CD you musy give one up, keeping an even amount of "buyers and sellers" preventing the demand from becoming greater than the supply, a shortage disequilibrium . Economists are on the fence as to if this will benefit the recording industry or not. The CEO of the site Bill Nguyen, claims that he will allow traders to buy new CDs if their requests are not available and he also wants to give artists a share of the profits for having their CDs traded. If Lala.com and other sites like it boom as many think they will, it can only shift the demand curve outward for the music industry. Sorry folks, looks like we won't be hanging (suing) any pirates (nerds) for much longer.