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Increasing returns to information in the US popular music industry

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  • David Giles

Abstract

Using data relating to 'number one' hits on the Billboard Hot 100 chart, we find clear evidence of increasing returns to information in the US market for popular music. This evidence supports related findings for the motion picture industry in various countries, and for Broadway productions.

Suggested Citation

  • David Giles, 2007. "Increasing returns to information in the US popular music industry," Applied Economics Letters, Taylor & Francis Journals, vol. 14(5), pages 327-331.
  • Handle: RePEc:taf:apeclt:v:14:y:2007:i:5:p:327-331
    DOI: 10.1080/13504850500461407
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    References listed on IDEAS

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    1. David Giles, 2007. "Survival of the hippest: life at the top of the hot 100," Applied Economics, Taylor & Francis Journals, vol. 39(15), pages 1877-1887.
    2. Eric Strobl & Clive Tucker, 2000. "The Dynamics of Chart Success in the U.K. Pre-Recorded Popular Music Industry," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 24(2), pages 113-134, May.
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    7. W. David Walls, 1997. "Increasing returns to information: evidence from the Hong Kong movie market," Applied Economics Letters, Taylor & Francis Journals, vol. 4(5), pages 287-290.
    8. Connolly, Marie & Krueger, Alan B., 2006. "Rockonomics: The Economics of Popular Music," Handbook of the Economics of Art and Culture, Elsevier.
    9. De Vany, Arthur S. & Walls, W. David, 2004. "Motion picture profit, the stable Paretian hypothesis, and the curse of the superstar," Journal of Economic Dynamics and Control, Elsevier, vol. 28(6), pages 1035-1057, March.
    10. David Maddison, 2004. "Increasing returns to information and the survival of broadway theatre productions," Applied Economics Letters, Taylor & Francis Journals, vol. 11(10), pages 639-643.
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    14. Hamlen, William A, Jr, 1994. "Variety and Superstardom in Popular Music," Economic Inquiry, Western Economic Association International, vol. 32(3), pages 395-406, July.
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    17. Chris Hand, 2001. "Increasing returns to information: further evidence from the UK film market," Applied Economics Letters, Taylor & Francis Journals, vol. 8(6), pages 419-421.
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    Cited by:

    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. Gaffeo, Edoardo & Scorcu, Antonello E. & Vici, Laura, 2008. "Demand distribution dynamics in creative industries: The market for books in Italy," Information Economics and Policy, Elsevier, vol. 20(3), pages 257-268, September.
    3. Ivan Pitt, 2010. "Superstar effects on royalty income in a performing rights organization," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 34(3), pages 219-236, August.
    4. Giles, David E., 2006. "Superstardom in the US popular music industry revisited," Economics Letters, Elsevier, vol. 92(1), pages 68-74, July.
    5. W. Walls, 2010. "Superstars and heavy tails in recorded entertainment: empirical analysis of the market for DVDs," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 34(4), pages 261-279, November.
    6. JORDI McKENZIE, 2009. "Illegal Music Downloading And Its Impact On Legitimate Sales: Australian Empirical Evidence," Australian Economic Papers, Wiley Blackwell, vol. 48(4), pages 296-307, December.
    7. Staffan Albinsson, 2013. "Swings and roundabouts: Swedish music copyrights 1980–2009," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 37(2), pages 175-184, May.

    More about this item

    JEL classification:

    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature

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