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The Music Market in the Age of Download

Author

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  • Iacopo Grassi

    (Università Federico II)

Abstract

Internet, mp3 files, peer-to-peer software and digital technologies for copying have radically modified the music sector. In this paper I present a theoretical model, that investigates the consequences of the appearance of a pirate low quality good (typically a mp3 file) in the music market. In this paper I propose a model of sampling, consider the possibility that the firm modifies its business entering into the low quality segment and investigate the supposed conflict between the recording company, whose profit depends on the CD sold, and the artist, whose profits depend in part on the live performance, the demand of which can increase for the positive externality due to the illegal download of music.

Suggested Citation

  • Iacopo Grassi, 2007. "The Music Market in the Age of Download," Working Papers 2007.80, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2007.80
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    References listed on IDEAS

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    More about this item

    Keywords

    File-sharing; Copyright; Sample Effect; Mp3; Concert;
    All these keywords.

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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    This paper has been announced in the following NEP Reports:

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