A consumer demand model for prerecorded music
Prerecorded music is a $12 billion industry in the United States and nearly \$40 billion worldwide. To date, very little economic research has been done to define and explain those factors that are responsible for this multi-billion-dollar industry.^ The focus of this research is to develop an econometric model which, through empirical analysis, determines those factors which affect the demand for prerecorded audio software. Ordinary least squares and pooled regression are utilized to analyze both world and individual country demand. When data is insufficient for regression analysis, graphical representations are incorporated. In addition, an overview and critique are done of pertinent demand models in the entertainment field along with an overview of the music industry's organizational structure. A theoretical basis for music copyright is also included.^ Through the creation and use of a hedonic demand model, the study finds that changes in technology that result in quality improvements, increases in real national income, and a youthful population, all are major determinants in the demand for prerecorded music. ^
Economics, General|Economics, Theory
K. Brad Stamm,
"A consumer demand model for prerecorded music"
(January 1, 1997).
ETD Collection for Fordham University.