Difference between revisions of "Ahn and Yooney (2008)"
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|Author=Illtae Ahn and Kiho Yoony | |Author=Illtae Ahn and Kiho Yoony | ||
|Title=On the Impact of Digital Music Distribution | |Title=On the Impact of Digital Music Distribution | ||
+ | |Year=2008 | ||
+ | |Full Citation=Ahn, Illtae, and Kiho Yoon. On the impact of digital music distribution. CESifo Economic Studies 55.2 (2009): 306-325. | ||
|Abstract=We present a framework to evaluate the impact of digital music distribution. We set up a | |Abstract=We present a framework to evaluate the impact of digital music distribution. We set up a | ||
representative model that enables the comparative static analysis. We then interpret | representative model that enables the comparative static analysis. We then interpret | ||
Line 12: | Line 14: | ||
consumer surplus is unambiguously positive. The impact on the social welfare is rather | consumer surplus is unambiguously positive. The impact on the social welfare is rather | ||
ambiguous in general, but the social welfare may increase for plausible parameter values. | ambiguous in general, but the social welfare may increase for plausible parameter values. | ||
− | |Plain Text Proposition=* First, though the producers’ profits have probably shrunk,the decrease may not be as severe as the observed sales decline. | + | |Authentic Link=http://cesifo.oxfordjournals.org/content/55/2/306.short |
+ | |Reference=Liebowitz (2006b); Yoon (2001); Oberholzer-Gee and Strumpf (2007); Peitz and Waelbroeck (2006); | ||
+ | |Plain Text Proposition=* Result 1: The observed price constancy implies that the sampling effect is significant. The quantity decrease may be due to the substitution effect as well as the producer’s price strategy. | ||
+ | * Result 2: Empirical facts support the conclusion that (i) the profit decreases; (ii) the consumer surplus increases; and (iii) the social welfare either increases or decreases due to the digitalization. In our model, the social welfare may increase for plausible parameter values. | ||
+ | * Result 3: Legal or technological measures to reverse the substitution effect caused by digital music distribution may decrease the social welfare further. | ||
+ | |FundamentalIssue=1. Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare, 5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media), 2. Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?, | ||
+ | |EvidenceBasedPolicy=F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness), | ||
+ | |Discipline=K1: Basic Areas of Law, K11: Property Law, L8: Industry Studies: Services, L86: Information and Internet Services • Computer Software, O3: Technological Change • Research and Development • Intellectual Property Rights, O34: Intellectual Property and Intellectual Capital | ||
+ | |Intervention-Response=* First, though the producers’ profits have probably shrunk,the decrease may not be as severe as the observed sales decline. | ||
* Second, the consumer surplus has unambiguously increased. | * Second, the consumer surplus has unambiguously increased. | ||
* Third, the social welfare may have increased for plausible parameter values. | * Third, the social welfare may have increased for plausible parameter values. | ||
− | |||
|Description of Data=Literature review | |Description of Data=Literature review | ||
|Data Year=2002 to 2007 | |Data Year=2002 to 2007 |
Revision as of 17:01, 8 April 2016
Contents
Source Details
Ahn and Yooney (2008) | |
Title: | On the Impact of Digital Music Distribution |
Author(s): | Illtae Ahn and Kiho Yoony |
Year: | 2008 |
Citation: | Ahn, Illtae, and Kiho Yoon. On the impact of digital music distribution. CESifo Economic Studies 55.2 (2009): 306-325. |
Link(s): | Definitive |
Key Related Studies: | |
Discipline: | |
Linked by: |
About the Data | |
Data Description: | Literature review |
Data Type: | Secondary data |
Secondary Data Sources: | |
Data Collection Methods: | |
Data Analysis Methods: | |
Industry(ies): | |
Country(ies): | |
Cross Country Study?: | No |
Comparative Study?: | No |
Literature review?: | Yes |
Government or policy study?: | No |
Time Period(s) of Collection: |
|
Funder(s): |
Abstract
We present a framework to evaluate the impact of digital music distribution. We set up a representative model that enables the comparative static analysis. We then interpret two empirical observations about the music industry, the sales decline and the price constancy, and fit the model to these observations. We find that, while the impact of digitalization on the producers’ profits is probably negative, it may not be as severe as the observed impact on the quantity. On the other hand, the impact of digitalization on the consumer surplus is unambiguously positive. The impact on the social welfare is rather ambiguous in general, but the social welfare may increase for plausible parameter values.
Main Results of the Study
- Result 1: The observed price constancy implies that the sampling effect is significant. The quantity decrease may be due to the substitution effect as well as the producer’s price strategy.
- Result 2: Empirical facts support the conclusion that (i) the profit decreases; (ii) the consumer surplus increases; and (iii) the social welfare either increases or decreases due to the digitalization. In our model, the social welfare may increase for plausible parameter values.
- Result 3: Legal or technological measures to reverse the substitution effect caused by digital music distribution may decrease the social welfare further.
Policy Implications as Stated By Author
- First, though the producers’ profits have probably shrunk,the decrease may not be as severe as the observed sales decline.
- Second, the consumer surplus has unambiguously increased.
- Third, the social welfare may have increased for plausible parameter values.