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On the “uniform pricing puzzle” in recorded music

On the “uniform pricing puzzle” in recorded music

Martin Richardson and Frank Stahler

This paper proposes a possible explanation for uniform pricing in the recorded music industry, based on a pooling equilibrium across different quality types.

We show that an ex ante ability to invest in the probability of success – which we identify with record companies’ artists and repertoire (A&R) expenditures – makes such a pooling equilibrium more likely.

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Updated:   18 February 2017 / Responsible Officer:  Dean, Business & Economics / Page Contact:  College Web Team