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Parallel imports and the lot of a starving artist

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  • Phillip McCalman

Abstract

This paper studies the role of copyright in the market for cultural output and how parallel imports effect the structure of incentives faced by artists. It demonstrates that parallel imports effect the distribution of income between generations of artists, raising the income of younger artists while reducing the income of superstars; the net outcome being a decline in the number of artists producing cultural output. Optimal subsidies to offset this decline can either involve a subsidy to starving young artists and no subsidy for superstars, or the opposite outcome depending on government attitudes towards the distribution of income.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500523501
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal The Journal of International Trade & Economic Development.

Volume (Year): 15 (2006)
Issue (Month): 1 ()
Pages: 49-62

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Handle: RePEc:taf:jitecd:v:15:y:2006:i:1:p:49-62

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Related research

Keywords: International trade; parallel imports; copyright; intellectual property rights;

References

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  1. Maskus, Keith E. & Yongmin Chen, 2000. "Vertical price control and parallel imports - theory and evidence," Policy Research Working Paper Series 2461, The World Bank.
  2. Keith E. Maskus, 2000. "Intellectual Property Rights in the Global Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 99.
  3. Malueg, D.A. & Schwartz, M., 1993. "Parallel Imports, Demand Dispersion and International Price Discrimination," Papers 93-6, U.S. Department of Justice - Antitrust Division.
  4. MacDonald, Glenn M, 1988. "The Economics of Rising Stars," American Economic Review, American Economic Association, vol. 78(1), pages 155-66, March.
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