On the "uniform pricing puzzle" in recorded music
This paper proposes a possible explanation for uniform pricing in the recorded music industry, based on a pooling equilibrium across different quality types. We show that an ex ante ability to invest in the probability of success – which we identify with record companies’ artists and repertoire (A&R) expenditures – makes such a pooling equilibrium more likely.
|Collections||ANU Research Publications|
|Source:||Information Economics and Policy|
|Access Rights:||Open Access|
|01_Richardson_on_the_Uniform Pricing Puzzle_2016.pdf||279.92 kB||Adobe PDF|
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