Stardom, Peer-to-peer and the Socially Optimal Distribution of Music

Citation: Michael X. Zhang Stardom, Peer-to-peer and the Socially Optimal Distribution of Music.
DOI (original publisher): 10.1.1.11.3027
Semantic Scholar (metadata): 10.1.1.11.3027
Sci-Hub (fulltext): 10.1.1.11.3027
Internet Archive Scholar (search for fulltext): Stardom, Peer-to-peer and the Socially Optimal Distribution of Music
Download: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.11.3027&rep=rep1&type=pdf
Tagged: Economics (RSS) music industry (RSS), filesharing (RSS), Economics (RSS)

Summary

Through a series of models, author shows that in the short term filesharing produces social welfare gains. In particular, consumers have a better information environment due to being able to listen to music before buying. In regard to the information environment, author points out that experience goods literature accepts that advertising can lower welfare due to sending false signals about quality of experience. Author argues that stars and major labels lose from filesharing, and in the long term policy should look toward new solutions such as filesharing levies.