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Copying, superstars, and artistic creation

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  • Alcalá, Francisco
  • González-Maestre, Miguel

Abstract

We provide a new perspective on the impact of unauthorized copying and copy levies on artistic creation. Our analysis emphasizes three aspects of artistic markets: the predominance of superstars, the important role of promotion expenditures, and the difficulties of talent-sorting. In the short run, piracy reduces superstars' earnings and market share and increases the number of niche and young artists. In the long run, copying can also have a positive effect on high-quality artistic creation by helping more young artists start their careers, which increases the number of highly talented artists in subsequent periods. The long-term impact of levies on copy equipment on artistic creation depends on whether their yields primarily accrue to superstars who already receive rents or are allocated to help young artists.

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Bibliographic Info

Article provided by Elsevier in its journal Information Economics and Policy.

Volume (Year): 22 (2010)
Issue (Month): 4 (December)
Pages: 365-378

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Handle: RePEc:eee:iepoli:v:22:y:2010:i:4:p:365-378

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Web page: http://www.elsevier.com/locate/inca/505549

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Keywords: Artistic creation Superstars Private copy Piracy Levies;

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References

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  1. W. Crain & Robert Tollison, 2002. "Consumer Choice and the Popular Music Industry: A Test of the Superstar Theory," Empirica, Springer, vol. 29(1), pages 1-9, March.
  2. Ypersele, T.P.M.C. van & Shavell, S., 1999. "Rewards versus Intellectual Property Rights," Discussion Paper 1999-26, Tilburg University, Center for Economic Research.
  3. Peitz, Martin & Waelbroeck, Patrick, 2004. "An Economist's Guide to Digital Music," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 32, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  4. MacDonald, Glenn M, 1988. "The Economics of Rising Stars," American Economic Review, American Economic Association, vol. 78(1), pages 155-66, March.
  5. Hal R. Varian, 2005. "Copying and Copyright," Journal of Economic Perspectives, American Economic Association, vol. 19(2), pages 121-138, Spring.
  6. Marko Tervi�, 2009. "Superstars and Mediocrities: Market Failure in the Discovery of Talent -super-1," Review of Economic Studies, Oxford University Press, vol. 76(2), pages 829-850.
  7. Darlene Chisholm, 2004. "Two-Part Share Contracts, Risk, and the Life Cycle of Stars: Some Empirical Results from Motion Picture Contracts," Journal of Cultural Economics, Springer, vol. 28(1), pages 37-56, February.
  8. Kinokuni, Hiroshi, 2005. "Compensation for copying and bargaining," Information Economics and Policy, Elsevier, vol. 17(3), pages 349-364, July.
  9. Alan B. Krueger, 2005. "The Economics of Real Superstars: The Market for Rock Concerts in the Material World," Journal of Labor Economics, University of Chicago Press, vol. 23(1), pages 1-30, January.
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  11. Paul Romer, 2002. "When Should We Use Intellectual Property Rights?," American Economic Review, American Economic Association, vol. 92(2), pages 213-216, May.
  12. Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
  13. Rob, Rafael & Waldfogel, Joel, 2006. "Piracy on the High C's: Music Downloading, Sales Displacement, and Social Welfare in a Sample of College Students," Journal of Law and Economics, University of Chicago Press, vol. 49(1), pages 29-62, April.
  14. Adler, Moshe, 1985. "Stardom and Talent," American Economic Review, American Economic Association, vol. 75(1), pages 208-12, March.
  15. Peitz, Martin & Waelbroeck, Patrick, 2006. "Piracy of digital products: A critical review of the theoretical literature," Information Economics and Policy, Elsevier, vol. 18(4), pages 449-476, November.
  16. Zentner, Alejandro, 2006. "Measuring the Effect of File Sharing on Music Purchases," Journal of Law and Economics, University of Chicago Press, vol. 49(1), pages 63-90, April.
  17. Gayer, Amit & Shy, Oz, 2003. "Copyright protection and hardware taxation," Information Economics and Policy, Elsevier, vol. 15(4), pages 467-483, December.
  18. Gayer, Amit & Shy, Oz, 2006. "Publishers, artists, and copyright enforcement," Information Economics and Policy, Elsevier, vol. 18(4), pages 374-384, November.
  19. Felix Oberholzer-Gee & Koleman Strumpf, 2007. "The Effect of File Sharing on Record Sales: An Empirical Analysis," Journal of Political Economy, University of Chicago Press, vol. 115, pages 1-42.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Benefits of piracy
    by chris dillow in Stumbling and Mumbling on 2010-04-20 07:28:00
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Cited by:
  1. Amedeo Piolatto & Florian Schuett, 2011. "A model of music piracy with popularity-dependent copying costs," Working Papers 2011/5, Institut d'Economia de Barcelona (IEB).
  2. Handke, Christian, 2012. "Digital copying and the supply of sound recordings," Information Economics and Policy, Elsevier, vol. 24(1), pages 15-29.

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