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</o:shapelayout></xml><![endif]--></head><body lang=DE link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><o:p> </o:p></p><p class=MsoPlainText><span lang=EN-US>Dear All,<o:p></o:p></span></p><p class=MsoPlainText><span lang=EN-US><o:p> </o:p></span></p><p class=MsoPlainText><span lang=EN-US>we are happy to announce the following Research Seminar in Economics to take place on Tuesday, November 6th at 18:00 - 19:30 in room E03, ground floor, Mohlstraße 36.<o:p></o:p></span></p><p class=MsoPlainText><span lang=EN-US><o:p> </o:p></span></p><p class=MsoPlainText><span lang=EN-US>Presenter: Martin Richardson</span><span lang=EN-US> </span><span lang=EN-US>– Australian National University<o:p></o:p></span></p><p class=MsoPlainText><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>Title: "Faddists, enthusiasts and Canadian divas: a model of the recorded music market (with an application to local content requirements in broadcasting)"<o:p></o:p></span></p><p class=MsoPlainText><span lang=EN-US><o:p> </o:p></span></p><p class=MsoPlainText><span lang=EN-US>Abstract:<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US style='font-size:10.0pt;font-family:TTdcr10'><o:p> </o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>This paper constructs a model of the provision of commercial music in which some<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>consumers (enthusiasts) enjoy diversity and others (faddists) prefer to follow what is<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>popular. Record companies sign up bands, only some of whom will ‘succeed’ – a<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>process modeled in a number of alternate ways – and radio stations broadcast<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>recordings. Consumers hear music on the radio and purchase recordings, where the<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>likelihood of purchase depends, in part, on the extent of radio airplay for a particular<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>recording. We show that consumers’ taste for diversity leads to under-entry in<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>general and we illustrate the working of the model by considering the impact of a<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>local content quota in broadcasting. It is shown that a quota that restricts the airtime<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>devoted to foreign music induces a shift in the pattern of band entry into<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>‘international’ genres. But a mild quota is welfare-improving in this model: even<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>though the diversity of local music is reduced, the quota increases the number of new<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>entrants, drawn in by the increased profitability of success. We also discuss the<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>consequences of a quota that requires increased broadcasting of ‘new’ music and<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>show that, while the addition of the ‘new’ band component decreases the total amount<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span lang=EN-US>of time devoted to listening to the radio by consumers (yielding a welfare loss), it<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US>does nothing to a record company’s incentives to sign up new bands.<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>Regards,<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>Prof. Dr. Johannes Pfeifer<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:10.0pt;font-family:TTdcr10'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US style='mso-fareast-language:DE'>--<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='mso-fareast-language:DE'>Johannes Pfeifer<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='mso-fareast-language:DE'>Department of Economics<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='mso-fareast-language:DE'>University of Tuebingen<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='mso-fareast-language:DE'>Mohlstrasse 36<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='mso-fareast-language:DE'>72074 Tuebingen<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='mso-fareast-language:DE'>Germany<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='mso-fareast-language:DE'>Phone: +49 7071 29</span><span style='mso-fareast-language:DE'>74137<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>