The creative instability hypothesis
AbstractThis paper provides an analysis of why many ‘stars’ tend to fade away rather than enjoying ongoing branding advantages from their reputations. We propose a theory of market overshooting in creative industries that is based on Schumpeterian competition between producers to maintain the interest of boundedly rational fans. As creative producers compete by offering further artistic novelty, this escalation of product complexity eventually leads to overshooting. We propose this as a theory of endogenous cycles in the creative industries. Copyright Springer Science+Business Media New York 2013
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Bibliographic InfoArticle provided by Springer in its journal Journal of Cultural Economics.
Volume (Year): 37 (2013)
Issue (Month): 2 (May)
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Web page: http://www.springerlink.com/link.asp?id=100284
Economics of creativity; Creative industries; Schumpeterian competition; Overshooting; D11; D21; Z11;
Find related papers by JEL classification:
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
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