publication . Article . Report . Other literature type . Preprint . 2012

Supply Responses to Digital Distribution: Recorded Music and Live Performances

Julie H. Mortimer; Alan T. Sorensen; Chris Nosko;
  • Published: 01 Mar 2012 Journal: Information Economics and Policy, volume 24, pages 3-14 (issn: 0167-6245, Copyright policy)
  • Publisher: Elsevier BV
Technologies that enable free redistribution of digital goods (e.g., music, movies, software, books) can undermine sellers’ ability to profitably sell such goods, which raises concerns about the future development of socially valuable digital products. In this paper we explore the possibility that broad, illegitimate distribution of a digital good might have offsetting effects on the demand for complementary non-digital goods. We examine the impact of file-sharing on sales of recorded music and on the demand for live concert performances. We provide evidence suggesting that while file-sharing reduced album sales, it simultaneously increased demand for concerts. ...
free text keywords: Economics and Econometrics, Management, Monitoring, Policy and Law, Digital goods, Microeconomics, Commerce, Economics, Advertising, Redistribution (cultural anthropology), Media economics, jel:L0, jel:L82
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