Superstars without talent? The Yule distribution controversy
Chung and Cox (1994) provided an intuitively appealing stochastic model which indicates that superstars may exist regardless of talent and which gives rise to the Yule distribution. We adopt a different empirical approach and test its goodness-of-fit using a parametric bootstrap and several powerful test statistics. Just like the discrete Pareto distribution, it is overwhelmingly rejected: it is a fairly accurate approximation of the lower quantiles of the superstar distribution, but overestimates the snowball effect that makes consumers purchase records of the most successful artists. In other words, the Yule distribution captures stardom, but not superstardom. A generalization of the Yule distribution provides an excellent fit in two of the three data sets.
|Date of creation:||25 Apr 2007|
|Date of revision:||09 May 2007|
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- David E. Giles, 2005.
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Econometrics Working Papers
0511, Department of Economics, University of Victoria.
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ULB Institutional Repository
2013/152412, ULB -- Universite Libre de Bruxelles.
- Chung, Kee H & Cox, Raymond A K, 1994. "A Stochastic Model of Superstardom: An Application of the Yule Distribution," The Review of Economics and Statistics, MIT Press, vol. 76(4), pages 771-75, November.
- Adler, Moshe, 2006. "Stardom and Talent," Handbook of the Economics of Art and Culture, Elsevier.
- Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-58, December.
- Cox, Raymond A. K. & Kleiman, Robert T., 2000. "A stochastic model of superstardom: evidence from institutional investor's All-American Research Team," Review of Financial Economics, Elsevier, vol. 9(1), pages 43-53.
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