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Parallel imports and the lot of a starving artist

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  • Phillip McCalman

Abstract

This paper studies the role of copyright in the market for cultural output and how parallel imports effect the structure of incentives faced by artists. It demonstrates that parallel imports effect the distribution of income between generations of artists, raising the income of younger artists while reducing the income of superstars; the net outcome being a decline in the number of artists producing cultural output. Optimal subsidies to offset this decline can either involve a subsidy to starving young artists and no subsidy for superstars, or the opposite outcome depending on government attitudes towards the distribution of income.

Suggested Citation

  • Phillip McCalman, 2006. "Parallel imports and the lot of a starving artist," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 15(1), pages 49-62.
    • Handle: RePEc:taf:jitecd:v:15:y:2006:i:1:p:49-62
    DOI: 10.1080/09638190500523501
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    References listed on IDEAS

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    1. Keith E. Maskus & Yongmin Chen, 2004. "Vertical Price Control and Parallel Imports: Theory and Evidence," Review of International Economics, Wiley Blackwell, vol. 12(4), pages 551-570, September.
    2. Malueg, David A. & Schwartz, Marius, 1994. "Parallel imports, demand dispersion, and international price discrimination," Journal of International Economics, Elsevier, vol. 37(3-4), pages 167-195, November.
    3. MacDonald, Glenn M, 1988. "The Economics of Rising Stars," American Economic Review, American Economic Association, vol. 78(1), pages 155-166, March.
    4. Keith E. Maskus, 2000. "Intellectual Property Rights in the Global Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 99, July.
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