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Bestseller lists and product discovery in the subscription-based market: Evidence from music streaming

Author

Listed:
  • Sim, Jaeung
  • Park, Jea Gon
  • Cho, Daegon
  • Smith, Michael D.
  • Jung, Jaemin

Abstract

Our study analyzes the impact of hourly-updated bestseller lists on music discovery in a digital streaming platform to provide evidence of whether and why bestseller lists affect consumer decisions in the subscription-based market. We circumvent the problem of demand-popularity simultaneity by leveraging high-frequency data and a regression discontinuity design. We find that being added to the top 100 charts increases song discovery by 11–13%. Furthermore, a series of analyses suggest that the saliency effect, instead of observational learning, is more likely to drive this behavioral change among streaming users. Specifically, we find that a song's chart entrance increases repeat consumption, normative rank positions within the top 100 lists do not demonstrate significant discontinuity, and an artist or a song's prior popularity does not moderate this effect.

Suggested Citation

  • Sim, Jaeung & Park, Jea Gon & Cho, Daegon & Smith, Michael D. & Jung, Jaemin, 2022. "Bestseller lists and product discovery in the subscription-based market: Evidence from music streaming," Journal of Economic Behavior & Organization, Elsevier, vol. 194(C), pages 550-567.
    • Handle: RePEc:eee:jeborg:v:194:y:2022:i:c:p:550-567
    DOI: 10.1016/j.jebo.2021.12.030
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    More about this item

    Keywords

    Streaming music; Bestseller lists; Saliency effect; Observational learning;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other

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