Information and the Skewness of Music Sales
This paper studies the role of product discovery in the demand for recorded music. We show that releasing a new album causes a substantial and permanent increase in sales of the artist's old albums-especially if the new release is a hit. Patterns in these "backward spillovers" suggest that they result from consumers discovering the artist upon hearing the new release. To explore the implications of consumers' incomplete information, we estimate a simple, learning-based model of market demand. Our results imply that the distribution of sales is substantially more skewed than it would be if consumers were more fully informed. (c) 2009 by The University of Chicago. All rights reserved.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
This item is featured on the following reading lists or Wikipedia pages:
- Information and the Skewness of Music Sales (JPE 2009) in ReplicationWiki
When requesting a correction, please mention this item's handle: RePEc:ucp:jpolec:v:117:y:2009:i:2:p:324-369. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division)
If references are entirely missing, you can add them using this form.