IDEAS home Printed from https://ideas.repec.org/a/kap/jculte/v37y2013i2p153-173.html
   My bibliography  Save this article

The creative instability hypothesis

Author

Listed:
  • Peter Earl

  • Jason Potts

Abstract

This paper provides an analysis of why many ‘stars’ tend to fade away rather than enjoying ongoing branding advantages from their reputations. We propose a theory of market overshooting in creative industries that is based on Schumpeterian competition between producers to maintain the interest of boundedly rational fans. As creative producers compete by offering further artistic novelty, this escalation of product complexity eventually leads to overshooting. We propose this as a theory of endogenous cycles in the creative industries. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Peter Earl & Jason Potts, 2013. "The creative instability hypothesis," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 37(2), pages 153-173, May.
    • Handle: RePEc:kap:jculte:v:37:y:2013:i:2:p:153-173
    DOI: 10.1007/s10824-012-9174-6
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10824-012-9174-6
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10824-012-9174-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Lanham, Richard A., 2006. "The Economics of Attention," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226468822.
    2. Adler, Moshe, 1985. "Stardom and Talent," American Economic Review, American Economic Association, vol. 75(1), pages 208-212, March.
    3. Earl, Peter E., 2001. "Simon's travel theorem and the demand for live music," Journal of Economic Psychology, Elsevier, vol. 22(3), pages 335-358, June.
    4. Jason Potts & Stuart Cunningham & John Hartley & Paul Ormerod, 2008. "Social network markets: a new definition of the creative industries," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 32(3), pages 167-185, September.
    5. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    6. Magee, Gary B., 2005. "Rethinking invention: cognition and the economics of technological creativity," Journal of Economic Behavior & Organization, Elsevier, vol. 57(1), pages 29-48, May.
    7. Daniel John Zizzo, 2003. "Empirical evidence on interdependent preferences: nature or nurture?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 27(6), pages 867-880, November.
    8. Neil M. Kay, 1979. "The Innovating Firm," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-03583-0, November.
    9. A. Norman & A. Ahmed & J. Chou & A. Dalal & K. Fortson & M. Jindal & C. Kurz & H. Lee & K. Payne & R. Rando & K. Sheppard & E. Sublett & J. Sussman & I. White, 2004. "On the Computational Complexity of Consumer Decision Rules," Computational Economics, Springer;Society for Computational Economics, vol. 23(2), pages 173-192, March.
    10. Peter E. Earl & Jason Potts, 2004. "The market for preferences," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 28(4), pages 619-633, July.
    11. Paulo Brito & Carlos Barros, 2005. "Learning-by-Consuming and the Dynamics of the Demand and Prices of Cultural Goods," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 29(2), pages 83-106, May.
    12. repec:cup:judgdm:v:3:y:2008:i:7:p:501-511 is not listed on IDEAS
    13. Tibor Scitovsky, 1981. "The Desire For Excitement In Modern Society," Kyklos, Wiley Blackwell, vol. 34(1), pages 3-13, February.
    14. Throsby, David, 1994. "The Production and Consumption of the Arts: A View of Cultural Economics," Journal of Economic Literature, American Economic Association, vol. 32(1), pages 1-29, March.
    15. Alison P. Lenton & Amanda Stewart, 2008. "Changing her ways: The number of options and mate-standard strength impact mate choice strategy and satisfaction," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 3(7), pages 501-511, October.
    16. Donata Favaro & Carlofilippo Frateschi, 2007. "A discrete choice model of consumption of cultural goods: the case of music," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 31(3), pages 205-234, September.
    17. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
    18. Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-858, December.
    19. Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
    20. Earl, Peter E. & Peng, Ti-Ching & Potts, Jason, 2007. "Decision-rule cascades and the dynamics of speculative bubbles," Journal of Economic Psychology, Elsevier, vol. 28(3), pages 351-364, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. McMahon, James, 2022. "The Political Economy of Hollywood: Capitalist Power and Cultural Production; introduction," EconStor Open Access Book Chapters, in: The Political Economy of Hollywood: Capitalist Power and Cultural Production, pages 1-10, ZBW - Leibniz Information Centre for Economics.
    2. McMahon, James, 2015. "What Makes Hollywood Run? Capitalist Power, Risk and the Control of Social Creativity," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 157994, January.
    3. Berg, Nathan, 2014. "Success from satisficing and imitation: Entrepreneurs' location choice and implications of heuristics for local economic development," Journal of Business Research, Elsevier, vol. 67(8), pages 1700-1709.
    4. Bianchi, Marina, 2014. "The magic of storytelling: How curiosity and aesthetic preferences work," Economics Discussion Papers 2014-23, Kiel Institute for the World Economy (IfW Kiel).
    5. Bianchi, Marina, 2014. "The magic of storytelling: How curiosity and aesthetic preferences work," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 8, pages 1-30.
    6. Brendan Markey-Towler, 2018. "Antifragility, the Black Swan and psychology," Evolutionary and Institutional Economics Review, Springer, vol. 15(2), pages 367-384, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brinja Meiseberg, 2014. "Trust the artist versus trust the tale: performance implications of talent and self-marketing in folk music," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(1), pages 9-42, February.
    2. Nadia Campaniello & Matteo Richiardi, 2011. "Beggar-thy-neighbor in Art Consumption: Evidence from the “Bel Paese”," LABORatorio R. Revelli Working Papers Series 116, LABORatorio R. Revelli, Centre for Employment Studies.
    3. Nela Filimon & Jordi López-Sintas & Carlos Padrós-Reig, 2011. "A test of Rosen’s and Adler’s theories of superstars," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 35(2), pages 137-161, May.
    4. Victor Ginsburgh, 2013. "Mark Blaug and the economics of the arts," Chapters, in: Marcel Boumans & Matthias Klaes (ed.), Mark Blaug: Rebel with Many Causes, chapter 15, pages 208-224, Edward Elgar Publishing.
    5. Popovic, Milenko, 2009. "Dynamic Models of Arts Labor Supply," MPRA Paper 19397, University Library of Munich, Germany.
    6. Marco Guerzoni & Massimiliano Nuccio, 2014. "Music consumption at the dawn of the music industry: the rise of a cultural fad," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(2), pages 145-171, May.
    7. Milenko POPOVIĆ & Kruna RATKOVIĆ, 2013. "Oversupply Of Labor And Other Peculiarities Of Arts Labor Market," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 4(2), pages 204-230.
    8. Marco Alderighi & Eleonora Lorenzini, 2012. "Cultural goods, cultivation of taste, satisfaction and increasing marginal utility during vacations," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 36(1), pages 1-26, February.
    9. Alessio Emanuele Biondo & Roberto Cellini & Tiziana Cuccia, 2020. "Choices on museum attendance: An agent‐based approach," Metroeconomica, Wiley Blackwell, vol. 71(4), pages 882-897, November.
    10. Gaenssle Sophia & Budzinski Oliver & Astakhova Daria, 2018. "Conquering the Box Office: Factors Influencing Success of International Movies in Russia," Review of Network Economics, De Gruyter, vol. 17(4), pages 245-266, December.
    11. Budzinski, Oliver & Kohlschreiber, Marie & Kuchinke, Björn & Pannicke, Julia, 2019. "Does music quality matter for audience voters in a music contest?," Ilmenau Economics Discussion Papers 122, Ilmenau University of Technology, Institute of Economics.
    12. Anthony Boardman & Shaun Hargreaves-Heap, 1999. "Network Externalities and Government Restrictions on Satellite Broadcasting of Key Sporting Events," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 23(3), pages 165-179, August.
    13. Louis Lévy-Garboua & Claude Montmarquette, 2011. "Demand," Chapters, in: Ruth Towse (ed.), A Handbook of Cultural Economics, Second Edition, chapter 26, Edward Elgar Publishing.
    14. Caterina Adelaide Mauri & Alexander Wolf, 2016. "Household Decisions on Arts Consumption: How Men Can Avoid the Ballet," Working Papers ECARES ECARES 2016-36, ULB -- Universite Libre de Bruxelles.
    15. Jacobs Martin, 2016. "Accounting for Changing Tastes: Approaches to Explaining Unstable Individual Preferences," Review of Economics, De Gruyter, vol. 67(2), pages 121-183, August.
    16. Jose A Bermudez Trivino & Lina M Medina Hurtado & Luis Fernando Aguado Quintero, 2015. "Analyzing the decision to listen to recorded music. A microeconometric approach," Working Papers 3, Faculty of Economics and Management, Pontificia Universidad Javeriana Cali.
    17. Nadia Campaniello & Matteo Richiardi, 2018. "The role of museums in bilateral tourist flows: evidence from Italy," Oxford Economic Papers, Oxford University Press, vol. 70(3), pages 658-679.
    18. Christian Schubert & Andreas Chai, 2012. "Sustainable Consumption and Consumer Sovereignty," Papers on Economics and Evolution 2012-14, Philipps University Marburg, Department of Geography.
    19. Budzinski, Oliver & Gaenssle, Sophia, 2018. "The economics of social media stars: An empirical investigation of stardom, popularity, and success on YouTube," Ilmenau Economics Discussion Papers 112, Ilmenau University of Technology, Institute of Economics.
    20. Hofmann, Julian & Clement, Michel & Völckner, Franziska & Hennig-Thurau, Thorsten, 2017. "Empirical generalizations on the impact of stars on the economic success of movies," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 442-461.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jculte:v:37:y:2013:i:2:p:153-173. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.