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Faddists, Enthusiasts and Canadian Divas: Broadcasting Quotas and the Supply Response

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  • Martin Richardson
  • Simon Wilkie

Abstract

This paper constructs a model of the recorded music market to investigate the consequences of local content requirements in broadcasting for the “internationalization” of domestic music. It models the entry decisions of bands, the contracting decisions of record companies, the airplay decisions of radio stations and the radio listening and recording purchasing decisions of consumers. The paper shows that a local content quota leads, perversely, to the increased internationalization of domestic music. A quota that also requires increased broadcasting of “new” music yields an additional welfare loss but does nothing to a record company's incentives to sign up new bands.

Suggested Citation

  • Martin Richardson & Simon Wilkie, 2015. "Faddists, Enthusiasts and Canadian Divas: Broadcasting Quotas and the Supply Response," Review of International Economics, Wiley Blackwell, vol. 23(2), pages 404-424, May.
  • Handle: RePEc:bla:reviec:v:23:y:2015:i:2:p:404-424
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    File URL: http://hdl.handle.net/10.1111/roie.12171
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    2. Andreu Mas-Colell, 1999. "Should Cultural Goods Be Treated Differently?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 23(1), pages 87-93, March.
    3. Martin Richardson & Simon Wilkie, 2013. "Faddists, enthusiasts and Canadian divas:a model of the recorded music market," ANU Working Papers in Economics and Econometrics 2013-600, Australian National University, College of Business and Economics, School of Economics.
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    10. Ben Shiller & Joel Waldfogel, 2011. "Music for a Song: An Empirical Look at Uniform Pricing and Its Alternatives," Journal of Industrial Economics, Wiley Blackwell, vol. 59(4), pages 630-660, December.
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    12. Perona, Mathieu, 2010. "How Broadcasting Quotas Harm Program Diversity," MPRA Paper 19860, University Library of Munich, Germany.
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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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