Indirect Network Effects with Two Salop Circles:The Example of the Music Industry

This paper analyses the interdependency between the market formusic recordings and concert tickets, assuming that there are positiveindirect network eects both from the record market to ticket sales forlive performances and vice versa. Using a model with two interrelatedSalop circles we show that prices in both markets are corrected down-wards when compared to the standard Salop model.[...]

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Year of publication:	2009-06-01
Authors:	Dewenter, Ralf ; Haucap, Justus ; Wenzel, Tobias
Institutions:	Institut für Volkswirtschaftslehre <Ilmenau>
Subject:	Medienökonomie \| media economics \| Musikwirtschaft \| Netzeffekt \| Network Effects \| Interdependenz

Table of Contents
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1 Introduction
2 The Model
3 File Sharing
4 Welfare
4.1 No File-Sharing
4.2 File-Sharing
5 Summary and Conclusions
Appendix
References

Persistent link: https://www.econbiz.de/10005870832