Abstract
In this paper, we focus on recorded music gifts during the holiday season and estimate the reduction in deadweight loss due to the transition from physical CD gift-giving to digital music gift-giving with gift cards. Based on our survey data, we find that music CD gifts generate an average deadweight loss between 15% and 38% of the price. According to our estimates of gift music album sales which are based on U.S. data, the welfare gains from digitization, in terms of eliminated deadweight loss as a percentage of total spending on music albums, were between 5% and 13% during the week when digital sales peak in 2014.
| Original language | English |
|---|---|
| Pages (from-to) | 106-122 |
| Number of pages | 17 |
| Journal | Journal of Economic Behavior and Organization |
| Volume | 149 |
| DOIs | |
| Publication status | Published - 1 May 2018 |
Keywords
- Deadweight loss
- Digitization
- Gift-giving
- Music
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