Exclusive Dealing and its Effects: The Impact of Large Music Festivals on Local Music Venues

Posted: 17 Oct 2011 Last revised: 13 Oct 2015

See all articles by R. Scott Hiller

R. Scott Hiller

Fairfield University - Department of Economics

Date Written: April 3, 2012

Abstract

This paper empirically examines how local music venues are affected by exclusive contracts used by four of the United States' most prominent music festivals. By utilizing a unique industry and multi-year dataset, as well as variation in the use of exclusive dealing across the country determined by the location of large music festivals, this paper adds to the paucity of empirical analysis of exclusive dealing and provides new insight into an ignored sector of the music industry. Results show that exclusive contracts correlate with a decrease in the number of venues in affected cities by 9 to 35 percent, with smaller cities being disproportionately impacted.

Keywords: Competitive effects, exclusive contracts, exclusive dealing, music industry

JEL Classification: L11, L42, L82

Suggested Citation

Hiller, R. Scott, Exclusive Dealing and its Effects: The Impact of Large Music Festivals on Local Music Venues (April 3, 2012). Available at SSRN: https://ssrn.com/abstract=1944990 or http://dx.doi.org/10.2139/ssrn.1944990

R. Scott Hiller (Contact Author)

Fairfield University - Department of Economics ( email )

Fairfield, CT 06824
United States

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