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Title:Indirect network effects with two salop circles: the example of the music industry
Authors:Prof. Dr. rer. pol. Dewenter, Ralf [Autor]
Prof. Dr. Haucap, Justus [Autor]
Dr. Wenzel, Tobias [Autor]
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Dateien vom 12.06.2009 / geändert 12.06.2009
URL for bookmark:http://www.db-thueringen.de/servlets/DocumentServlet?id=13230
Status:Document published
Dokumententyp:Fachpublikation » Monographie
Keywords:Music Industry, Indirect Network Effects, Salop Model, File Sharing
Dewey Decimal Classification:300 Sozialwissenschaften » 330 Wirtschaft » 330 Wirtschaft
Andere Dokumente dieser Kategorie
Evaluationstyp:Für die Langzeitarchivierung vorgesehen
This paper analyses the interdependency between the market for music recordings and concert tickets, assuming that there are positive indirect network effects both from the record market to ticket sales for live performances and vice versa. Using a model with two interrelated Salop circles we show that prices in both markets are corrected downwards when compared to the standard Salop model. Furthermore, we show that the effects of file sharing on firms’ profitability and on variety are ambiguous. File sharing can increase profits through increased concert ticket demand and thereby also lead to additional market entry and additional variety.

Diskussionspapier / Technische Universität Ilmenau, Institut für Volkswirtschaftslehre ; 63
ISSN 0949-3859

Diskussionspapiere / Technische Universität Ilmenau, Institut für Volkswirtschaftslehre
Hochschule/Fachbereich:Technische Universität Ilmenau » Fakultät für Wirtschaftswissenschaften (bis 2013)
Document created on: 12.06.2009
Files changed on: 12.06.2009