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Untalented but successful? Rosen and Adler superstar Pokemons

Author

Listed:
  • Olivier Gergaud

    (KEDGE Business School, Department of Finance and Economics
    Sciences Po)

  • Vincenzo Verardi

    (Université de Namur
    Université libre de Bruxelles)

Abstract

When studying the reasons why and the conditions under which superstars emerge in some markets, scholars face difficulties in measuring talent, obtaining confidential data on earnings, and finding appropriate econometric techniques that cope with the presence of outliers (superstars). In this paper, we use a dataset from the Pokemon trading card game in which (i) there is no unidentifiable heterogeneity, (ii) rarity can be separated from talent, and (iii) objective earnings are observable through transaction prices. Using various parametric or semiparametric estimation techniques, we confirm that the relationship between talent and economic success is convex. On top of that, we document the existence of a different category of superstars with inferior talent and short-lived economic success.

Suggested Citation

  • Olivier Gergaud & Vincenzo Verardi, 2021. "Untalented but successful? Rosen and Adler superstar Pokemons," Empirical Economics, Springer, vol. 60(5), pages 2637-2655, May.
    • Handle: RePEc:spr:empeco:v:60:y:2021:i:5:d:10.1007_s00181-020-01835-1
    DOI: 10.1007/s00181-020-01835-1
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    References listed on IDEAS

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    More about this item

    Keywords

    Superstars; Semiparametric estimation; Hedonic prices; Quasi-experimental data;
    All these keywords.

    JEL classification:

    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • Z19 - Other Special Topics - - Cultural Economics - - - Other

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