Francisco Alcalá () (Departamento de Fundamentos del Análisis Económico, Universidad de Murcia, Campus de Espinardo) Miguel González-Maestre () (Departamento de Fundamentos del Análisis Económico, Universidad de Murcia, Campus de Espinardo)
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We provide a new perspective on the impact of unauthorized copying and copy levies on artistic creation. Our analysis emphasizes three important aspects of artistic markets: the predominance of superstars, the dynamics of talent sorting, and the importance of promotion expenditures. In the short run, piracy reduces superstars’ earnings and market share, and increases the number of niche and young artists. From a dynamic perspective, piracy may help more young artists start their careers, thereby increasing the number of highly talented artists in the long run. The long run impact on artistic creation of levies on copy equipment may crucially depend on whether their yields primarily accrue to superstars or are allocated to help young artists.
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Paper provided by International Economics Institute, University of Valencia in its series Working Papers with number
0902.
Length: 32 pages Date of creation: Aug 2009 Date of revision: Handle: RePEc:iei:wpaper:0902
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Martin Peitz & Patrick Waelbroeck, 2004.
"An Economist's Guide to Digital Music,"
Discussion Papers
32, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
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