Digital Technology and the Allocation of Ownership in the Music Industry
AbstractWe apply the property rights theory of Grossman-Hart-Moore in the music industry and study the optimal allocation of copyright between the artists who create music and the labels who promote and distribute it. Digital technology opens up a role for new intermediaries. We find that entry of online platforms occurs only if they are sufficiently more productive in distribution than the incumbent label. Furthermore, entry leads to a change in bargaining positions and it can become optimal for the copyright to be shifted from the label to the artist.
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Bibliographic InfoPaper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2009-096.
Date of creation: 17 Nov 2009
Date of revision:
property rights theory; copyright; internet; music industry;
Other versions of this item:
- Tobias Regner & Maija Halonen-Akatwijuka, 2004. "Digital Technology And The Allocation Of Ownership In The Music Industry," Royal Economic Society Annual Conference 2004 54, Royal Economic Society.
- Maija Halonen-Akatwijuka & Tobias Regner, 2009. "Digital Technology and the Allocation of Ownership in the Music Industry," The Centre for Market and Public Organisation 09/228, Department of Economics, University of Bristol, UK.
- Maija Halonen-Akatwijuka & Toby Regner, 2004. "Digital Technology and the Allocation of Ownership in the Music Industry," The Centre for Market and Public Organisation 04/096, Department of Economics, University of Bristol, UK.
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-27 (All new papers)
- NEP-COM-2009-11-27 (Industrial Competition)
- NEP-CUL-2009-11-27 (Cultural Economics)
- NEP-ICT-2009-11-27 (Information & Communication Technologies)
- NEP-IPR-2009-11-27 (Intellectual Property Rights)
- NEP-MIC-2009-11-27 (Microeconomics)
- NEP-TID-2009-11-27 (Technology & Industrial Dynamics)
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