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Research Note--Testing File Sharing's Impact on Music Album Sales in Cities

Author

Listed:
  • Stan J. Liebowitz

    (School of Management, University of Texas at Dallas, Richardson, Texas 75080)

Abstract

Using a data set including album sales, Internet penetration, and various demographic measures for 99 American cities over the period 1998-2003, this paper empirically examines the extent to which file sharing has caused the U.S. decline in sound-recording sales over that period. Also examined is the impact of the Internet on entertainment activities so as to help cleanse the Internet penetration coefficient of that impact. The conclusion from this analysis is that file sharing appears to have caused the entire decline in record sales and appears to have vitiated what otherwise would have been growth in the industry.

Suggested Citation

  • Stan J. Liebowitz, 2008. "Research Note--Testing File Sharing's Impact on Music Album Sales in Cities," Management Science, INFORMS, vol. 54(4), pages 852-859, April.
    • Handle: RePEc:inm:ormnsc:v:54:y:2008:i:4:p:852-859
    DOI: 10.1287/mnsc.1070.0833
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    References listed on IDEAS

    as
    1. Felix Oberholzer-Gee & Koleman Strumpf, 2007. "The Effect of File Sharing on Record Sales: An Empirical Analysis," Journal of Political Economy, University of Chicago Press, vol. 115(1), pages 1-42.
    2. Liebowitz, Stan J, 2006. "File Sharing: Creative Destruction or Just Plain Destruction?," Journal of Law and Economics, University of Chicago Press, vol. 49(1), pages 1-28, April.
    3. Hong, Seung-Hyun, 2007. "The recent growth of the internet and changes in household-level demand for entertainment," Information Economics and Policy, Elsevier, vol. 19(3-4), pages 304-318, October.
    Full references (including those not matched with items on IDEAS)

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