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Faddists, Enthusiasts and Canadian Divas: Broadcasting Quotas and the Supply Response
Author(s) -
Richardson Martin,
Wilkie Simon
Publication year - 2015
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/roie.12171
Subject(s) - broadcasting (networking) , incentive , internationalization , active listening , purchasing , welfare , business , economics , advertising , marketing , microeconomics , market economy , computer science , sociology , computer network , communication
This paper constructs a model of the recorded music market to investigate the consequences of local content requirements in broadcasting for the “internationalization” of domestic music. It models the entry decisions of bands, the contracting decisions of record companies, the airplay decisions of radio stations and the radio listening and recording purchasing decisions of consumers. The paper shows that a local content quota leads, perversely, to the increased internationalization of domestic music. A quota that also requires increased broadcasting of “new” music yields an additional welfare loss but does nothing to a record company's incentives to sign up new bands.