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Copying, superstars, and artistic creation

Author Info

Listed author(s):
  • Alcalá, Francisco
  • González-Maestre, Miguel

Abstract

We provide a new perspective on the impact of unauthorized copying and copy levies on artistic creation. Our analysis emphasizes three aspects of artistic markets: the predominance of superstars, the important role of promotion expenditures, and the difficulties of talent-sorting. In the short run, piracy reduces superstars' earnings and market share and increases the number of niche and young artists. In the long run, copying can also have a positive effect on high-quality artistic creation by helping more young artists start their careers, which increases the number of highly talented artists in subsequent periods. The long-term impact of levies on copy equipment on artistic creation depends on whether their yields primarily accrue to superstars who already receive rents or are allocated to help young artists.

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File URL: http://www.sciencedirect.com/science/article/pii/S0167-6245(10)00039-9
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Article provided by Elsevier in its journal Information Economics and Policy.

Volume (Year): 22 (2010)
Issue (Month): 4 (December)
Pages: 365-378

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Handle: RePEc:eee:iepoli:v:22:y:2010:i:4:p:365-378
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505549

Keywords: Artistic creation Superstars Private copy Piracy Levies;

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Find related papers by JEL classification:
  • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
  • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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  1. Rob, Rafael & Waldfogel, Joel, 2006. "Piracy on the High C's: Music Downloading, Sales Displacement, and Social Welfare in a Sample of College Students," Journal of Law and Economics, University of Chicago Press, vol. 49(1), pages 29-62, April.
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  12. Marko Terviö, 2009. "Superstars and Mediocrities: Market Failure in the Discovery of Talent -super-1," Review of Economic Studies, Oxford University Press, vol. 76(2), pages 829-850.
  13. Hal R. Varian, 2005. "Copying and Copyright," Journal of Economic Perspectives, American Economic Association, vol. 19(2), pages 121-138, Spring.
  14. Alan B. Krueger, 2005. "The Economics of Real Superstars: The Market for Rock Concerts in the Material World," Journal of Labor Economics, University of Chicago Press, vol. 23(1), pages 1-30, January.
  15. Gayer, Amit & Shy, Oz, 2006. "Publishers, artists, and copyright enforcement," Information Economics and Policy, Elsevier, vol. 18(4), pages 374-384, November.
  16. MacDonald, Glenn M, 1988. "The Economics of Rising Stars," American Economic Review, American Economic Association, vol. 78(1), pages 155-166, March.
  17. Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-858, December.
  18. Gayer, Amit & Shy, Oz, 2003. "Copyright protection and hardware taxation," Information Economics and Policy, Elsevier, vol. 15(4), pages 467-483, December.
  19. Paul Romer, 2002. "When Should We Use Intellectual Property Rights?," American Economic Review, American Economic Association, vol. 92(2), pages 213-216, May.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Benefits of piracy
    by chris dillow in Stumbling and Mumbling on 2010-04-20 07:28:00
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Cited by:

  1. Alcalá, Francisco & Gonzalez-Maestre, Miguel, 2009. "Artistic Creation and Intellectual Property," UMUFAE Economics Working Papers 4614, DIGITUM. Universidad de Murcia.
  2. Piolatto, Amedeo & Schuett, Florian, 2012. "Music piracy: A case of “The Rich Get Richer and the Poor Get Poorer”," Information Economics and Policy, Elsevier, vol. 24(1), pages 30-39.
  3. Handke, Christian, 2012. "Digital copying and the supply of sound recordings," Information Economics and Policy, Elsevier, vol. 24(1), pages 15-29.

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