Music for a Song: An Empirical Look at Uniform Pricing and its Alternatives

31 Pages Posted: 20 Dec 2011

See all articles by Benjamin Shiller

Benjamin Shiller

Brandeis University - Department of Economics

Date Written: December 2011

Abstract

With digital music as its context, this paper quantifies how much money would be made using alternatives to uniform pricing. Using survey‐based data on nearly 1,000 students' valuations of 100 popular songs in early 2008 and early 2009, we find that various alternatives can raise both producer and consumer surplus. Digital music revenue could be raised by between a sixth and a third relative to profit‐maximizing uniform pricing. While person‐specific uniform pricing can raise revenue by over 50 per cent, none of the non‐discriminatory schemes raise revenue's share of surplus above 40 per cent of total surplus.

Suggested Citation

Shiller, Benjamin, Music for a Song: An Empirical Look at Uniform Pricing and its Alternatives (December 2011). Available at SSRN: https://ssrn.com/abstract=1974821 or http://dx.doi.org/10.1111/j.1467-6451.2011.00470.x

Benjamin Shiller (Contact Author)

Brandeis University - Department of Economics ( email )

Waltham, MA 02454-9110
United States
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HOME PAGE: http://benjaminshiller.com

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