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: Centre d'Economie de la Sorbonne - Ecole d'Economie de Paris, https://centredeconomiesorbonne.univ-paris1.fr
Guillaume Fürst: Department of Psychology and Educational Sciences, University of Geneva

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

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)
JEL-codes: C9 D04 Z1 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2015-03
New Economics Papers: this item is included in nep-cul and nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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ftp://mse.univ-paris1.fr/pub/mse/CES2015/15027.pdf (application/pdf)

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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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:15027

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