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ASCAP Versus BMI (Versus CBS): Modeling Competition between and Bundling by Performance Rights Organizations

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  • Kleit, Andrew N

Abstract

Building has been a long-standing issue in industrial organization. In recent years, bundling has gained renewed controversy as it has been employed by computer software manufacturers. This article examines BMI v. CBS (1979), which dealt with bundling by performance rights organizations (PROs). A model of competition between PROs using blanket licenses is presented. The usage of blanket licenses is shown to generate both higher profits for PROs and higher costs for the users of musical compositions when there are a small number of competing PROs. In addition, the model explains why blanket licenses are observed in unregulated PRO markets. Copyright 2000 by Oxford University Press.

Suggested Citation

  • Kleit, Andrew N, 2000. "ASCAP Versus BMI (Versus CBS): Modeling Competition between and Bundling by Performance Rights Organizations," Economic Inquiry, Western Economic Association International, vol. 38(4), pages 579-590, October.
  • Handle: RePEc:oup:ecinqu:v:38:y:2000:i:4:p:579-90
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    Cited by:

    1. Aoki, Reiko & Schiff, Aaron, 2010. "Intellectual property clearinghouses: The effects of reduced transaction costs in licensing," Information Economics and Policy, Elsevier, vol. 22(3), pages 218-227, July.
    2. Connolly, Marie & Krueger, Alan B., 2006. "Rockonomics: The Economics of Popular Music," Handbook of the Economics of Art and Culture, in: V.A. Ginsburgh & D. Throsby (ed.), Handbook of the Economics of Art and Culture, edition 1, volume 1, chapter 20, pages 667-719, Elsevier.
    3. Ryoko Oki, 2015. "Fixed-fee Pricing and Entry," Economics Bulletin, AccessEcon, vol. 35(1), pages 233-240.
    4. Marie Connolly & Alan Krueger, 2005. "Rockonomics: The Economics of Popular Music," Working Papers 878, Princeton University, Department of Economics, Industrial Relations Section..
    5. Aoki, Reiko & 青木, 玲子 & アオキ, レイコ, 2007. "Clearing Houses and Patent Pools: Access to Genetic Patents," Discussion Paper 325, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.

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