On the 'uniform pricing puzzle' in recorded music

摘要

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. (C) 2016 Elsevier B.V. All rights reserved.