|
on Network Economics |
| By: | Dewenter, Ralf; Haucap, Justus; Wenzel, Tobias |
| Abstract: | 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 down- wards 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. |
| Keywords: | Music Industry,Indirect Network Effects,Salop Model,File Sharing |
| JEL: | L13 L82 Z10 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuiedp:63&r=net |
| By: | Hans Gersbach (CER-ETH - Center of Economic Research at ETH Zurich, Switzerland); Hans Haller (Department of Economics, Virginia Polytechnic Institute and State University, Blacksburg, VA USA.) |
| Abstract: | The relationship between our general equilibrium model with multi- member households and club models with multiple private goods is investigated. The main distinction in the definitions consists of the equilibrium concepts. As a rule, competitive equilibria among house- holds where no group of consumers can benefit from forming a new household and valuation equilibria prove equivalent in the absence of consumption externalities, but not in their presence. |
| Keywords: | Household Behavior, Household Formation, General Equilibrium, Clubs |
| JEL: | D13 D50 D62 D71 |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:09-110&r=net |