"Winner-Take-All" Markets in the Creative Industries
In winner-take-all markets, the goods and services offered differ only slightly in quality, but their success on the market is extremely disparate. The number of winners is scant compared to the legions of losers. In this market, performance, quality, and talent do not translate proportionately into success - performance and success go their separate ways. An artist earning more than one hundred times the average income does not necessarily have a hundred times more talent. Because the chances of succeeding are so small, the likelihood of earning an above-average income - or of surviving on the market at all - is slim. What motivates the people who decide to venture into these markets? What factors influence their decision to invest? How do winner-take-all markets evolve? This research project aims to answer these questions both theoretically and empirically, focusing primarily on the social forces behind the development of these markets and their participantsí vastly uneven prospects for success. Empirically, the project examines markets in the creative industries, drawing on structural data from the film industry and standardized surveys of artists, musicians, actors, and other creative professionals. Project duration: May 2010 to April 2016.