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On the uniform pricing puzzle in recorded music

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  • Martin Richardson

    ()

  • Frank Stahler

    ()

Abstract

This paper proposes a possible explanation for uniform pricing in the recorded music industry, based on a pooling equilibrium across different quality types. We show that an ex ante ability to invest in the probability of success - which we identify with record companies' A&R expenditures - makes such a pooling equilibrium more likely.

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Bibliographic Info

Paper provided by Australian National University, College of Business and Economics, School of Economics in its series ANU Working Papers in Economics and Econometrics with number 2013-612.

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Length: 19 Pages
Date of creation: Jun 2013
Date of revision:
Handle: RePEc:acb:cbeeco:2013-612

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