Time spent on New Songs: Word-of-Mouth and Price Effects on Teenager Consumption

Noémi Berlin, Anna Bernard () and Guillaume Fürst ()
Additional contact information
Anna Bernard: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
Guillaume Fürst: University of Geneva - Department of Psychology and Educational Sciences - UNIGE - Université de Genève = University of Geneva

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: The stardom system characterizes creative industries: the demand and revenues are concentrated on a few bestselling books, movies or music. In this paper, we study the demand structure between bestsellers and new artists' productions in the music industry. We set up an experiment where participants face real choices situations. We crate three treatments to isolate the effect of information and incentives on diversity. In a first treatment, music is consumed for free without information. In a second one, subjects receive a prior information on others' evaluation of songs to study the effect of word-of-mouth. Finally, in a third one, a real market is introduced and music is bought. Significant evidence shows that word-of-mouth lowers diversity, while price incentives tend to lift it. In both treatments, subjects also react to the information or incentives nature.

Keywords: experimental economics; cultural goods; music industry; Stardom system (search for similar items in EconPapers)
Date: 2015-03
New Economics Papers: this item is included in nep-cul and nep-exp
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01163907v1
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Citations: View citations in EconPapers (4)

Published in 2015

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Related works:
Journal Article: Time spent on new songs: word-of-mouth and price effects on teenager consumption (2015)
Working Paper: Time spent on New Songs: Word of Mouth and Price Effects on Teenager Consumption (2015)
Working Paper: Time spent on New Songs: Word-of-Mouth and Price Effects on Teenager Consumption (2015)
Working Paper: Time spent on New Songs: Word-of-Mouth and Price Effects on Teenager Consumption (2015)
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