Article
A Note on the Elasticity and Price Dispersions in the Music Recording Industry
The Review of Industrial Organization
(2000)
Abstract
The present note examines price dispersions in the music recording industry between new release and mid-line (older) recordings. The model employs the framework developed within the industrial economics literature and provides empirical results suggesting that new release prices are lower than those of mid-level recordings. This result follows from differing buyer characteristics and varying levels of close substitutes, leading to higher demand elasticities for new release recordings. Finally, the theoretical expectations should hold in the presence of either significant scale economies or modest minimum efficient scales of production.
Disciplines
Publication Date
2000
DOI
10.1023/A:1007820616596
Publisher Statement
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Citation Information
Franklin G. Mixon and Rand W. Ressler. "A Note on the Elasticity and Price Dispersions in the Music Recording Industry" The Review of Industrial Organization Vol. 17 (2000) p. 465 - 470 ISSN: 1573-7160 Available at: http://works.bepress.com/rand-ressler/31/