Causal-Loop Diagram Analysis
 
 

 
 


•  Software piracy leads to decreasing profit of IT Industries. IT industries, when meet with low profits, they would reduce their input costs by decreasing employments, decrease implementation of copy protection on their software, decrease the distribution of freebies and special features on the software to save costs, and also increase the price of the original goods to earn more profits.

•  A decreasing employment rate will decrease the income of individuals which will then lead to increasing software piracy because these people will resort to pirated software since they cannot afford the genuine ones.

•  When the price of genuine software products increases, the usage of original software might decrease, and thus lead to an increase in software piracy.

•  An increase in implementation of copy protection on the software will increase usage of original software and decrease piracy rate.

•  A decrease in distribution of freebies and special features on the original software due to cost saving will lead to reduction in usage of original software and thus leads to more level of piracy.

•  An increase in software piracy rate will pressurize the government to enforce regulations and laws on it, which in turn, will reduce the convenience of downloading pirated software directly from the Internet or purchasing them at physical stores. Besides that, government intervention increases the risk of getting caught and prosecuted. These lead to decreasing software piracy rate.

•  Government intervention such as promoting public awareness on software piracy through education also increases the public awareness on software piracy and this leads to decrease in software piracy.

•  Education also plays an important part to increase an individual's income. A highly educated individual tends to get a better job than those lower educated individuals. A better job and an increase in income will lead to increasing purchase of genuine software, thus reducing piracy rate.

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Credits: Koh Li Qian Brina, Tan Wei Boon Keith, Chen Jiayang Joseph, Pan Jin Gui Thomas