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Payment moral hazard describes the uncertainty of principals with respect to the payment of agents in information goods markets. The relationship between principal (label or artist) and agent (customers) is about the agent making a payment in exchange for the consumption of music. While this contractual relationship is very trivial to enforce for physical goods (CDs) of the traditional music industry, it is far from that for "weightless" music (downloads). P2P networks make files non-excludable, e.g. they could be consumed without paying for them. The principal - artists and labels - does not know whether consumed goods have been paid for by agents or at least they cannot enforce payment. This information asymmetry causes non-contractibility of the payment.
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