A.B. Krueger (2004). The Economics of Real Superstars: The Market for Rock Concerts in the Material World. Princeton University and NBER
This article summarizes and seeks tounderstand trends in the concert industry from 1981 to 2003. Explanations that are examined include: 1) the possible crowding out of the secondary ticket market; 2) rising superstar effects; 3) Baumoland Bowen’s disease; 4) increased concentration of concert promoters; and 5) the erosion of complementarities between concerts and album sales because of file sharing and CD copying. The papertentatively concludes that the decline in complementarities between concerts and album sales is the main cause of the recent surge in concert prices and decline in ticket sales. The theories or references theauthor uses to get to a certain stamen are:
* Eliot (1993)
* A remark by Sharon Osbourne (2002; p. 56)
* Caves (2000)
The main source of data used in this paper is from Pollstar’s Boxoffice Report database. (www.pollstaronline.com/report.asp.). To supplement the data obtain from Pollstar’s he collected information from The Rolling Stone Encyclopedia of Rock & Roll. He had twodata limitations, such as the ticket price and revenue pertain to the list price and has no information of the secondary market. The method the author uses to explain his research is the deductivemethod because he starts the article talking about popular music then economics and narrowed it down to the economics of the rock & roll.
Between the two hypotheses the author makes, he concludedthat the technology-induced erosion of the complementarity between record sales and concert tickets and that it is likely that the downloading of music will put upward pressure on concert prices andrevenue in the near future. As for future investigations, the author doesn’t make any references or recommendations for a future investigation.
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