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Creative Inputs as the Cause of Baumol's Cost Disease: The Example of Media Services


  • Paschal Preston
  • Sergio Sparviero


This article explains that the most important aspect of W. J. Baumol's idea of cost disease is the fundamental intuition that there are some types of labor's contributions that are irreplaceable by new technologies. These contributions are indentified as “creative inputs”: original ideas, concepts, actions, and inductive solutions to ill-defined problems. This article also empirically demonstrates that media content activities are stagnant, whereas activities involved in the distribution and exhibition of media content are progressive.

Suggested Citation

  • Paschal Preston & Sergio Sparviero, 2009. "Creative Inputs as the Cause of Baumol's Cost Disease: The Example of Media Services," Journal of Media Economics, Taylor & Francis Journals, vol. 22(4), pages 239-252.
  • Handle: RePEc:taf:jmedec:v:22:y:2009:i:4:p:239-252 DOI: 10.1080/08997760903375910

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    References listed on IDEAS

    1. Mitchel Y. Abolafia (ed.), 2005. "Markets," Books, Edward Elgar Publishing, number 2788.
    2. Bourreau, Marc, 2003. "Mimicking vs. counter-programming strategies for television programs," Information Economics and Policy, Elsevier, vol. 15(1), pages 35-54, March.
    3. Jack H. Beebe, 1977. "Institutional Structure and Program Choices in Television Markets," The Quarterly Journal of Economics, Oxford University Press, vol. 91(1), pages 15-37.
    4. Steven T. Berry & Joel Waldfogel, 1999. "Free Entry and Social Inefficiency in Radio Broadcasting," RAND Journal of Economics, The RAND Corporation, vol. 30(3), pages 397-420, Autumn.
    5. Papandrea, Franco, 1997. "Modelling television programming choices," Information Economics and Policy, Elsevier, vol. 9(3), pages 203-218, September.
    6. Roson Roberto, 2005. "Two-Sided Markets: A Tentative Survey," Review of Network Economics, De Gruyter, vol. 4(2), pages 1-19, June.
    7. Anthony Dukes, 2004. "The Adverstising Market in a Product Oligopoly," Journal of Industrial Economics, Wiley Blackwell, vol. 52(3), pages 327-348, September.
    8. Simon P. Anderson & Stephen Coate, 2005. "Market Provision of Broadcasting: A Welfare Analysis," Review of Economic Studies, Oxford University Press, vol. 72(4), pages 947-972.
    9. Michael Spence & Bruce Owen, 1977. "Television Programming, Monopolistic Competition, and Welfare," The Quarterly Journal of Economics, Oxford University Press, vol. 91(1), pages 103-126.
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    Cited by:

    1. Haans, Richard & van Witteloostuijn, Arjen, 2018. "Expected job creation across the cultural industries : A sectoral division and its implications for cultural policy," Other publications TiSEM 7ce678fe-ba20-4daa-907c-c, Tilburg University, School of Economics and Management.

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