Quantifying the Benefits of New Products: Music Streaming Platforms
Abstract/Contents
- Abstract
- The advent of digitization and the entry of music streaming platforms has changed the way music is consumed and discovered. In order to quantify the economic effects of music streaming, I build a structural demand model for music streaming platforms in the United States. To estimate the model, I construct a new market-level dataset with market shares and prices for 2016-2019 and augment this dataset with average consumer demographics to introduce heterogeneity in consumer tastes. I conduct several counterfactual simulations to measure the change in consumer welfare when a product or a set of products is removed from the consumer's choice set. The results from these simulations align with the story that younger populations benefit more from, and hence take to new technology more than the older age groups. I then estimate a multiproduct supply-side model to simulate a Bertrand (Nash) equilibrium and analyze the impact of a possible acquisition of SoundCloud by Spotify. The results support the idea that reduced competition in markets is detrimental to consumers.
Description
| Type of resource | text |
|---|---|
| Date created | May 2020 |
Creators/Contributors
| Author | Gujral, Sana |
|---|---|
| Primary advisor | Yurukoglu, Ali |
Subjects
| Subject | Streaming |
|---|---|
| Subject | Music Streaming |
| Subject | New Goods |
| Subject | Competition |
| Subject | Merger |
| Subject | Acquisition |
| Subject | Department of Economics |
| Genre | Thesis |
Bibliographic information
Access conditions
- Use and reproduction
- User agrees that, where applicable, content will not be used to identify or to otherwise infringe the privacy or confidentiality rights of individuals. Content distributed via the Stanford Digital Repository may be subject to additional license and use restrictions applied by the depositor.
- License
- This work is licensed under a Creative Commons Attribution Non Commercial 3.0 Unported license (CC BY-NC).
Preferred citation
- Preferred Citation
- Gujral, Sana. (2020). Quantifying the Benefits of New Products: Music Streaming Platforms. Stanford Digital Repository. Available at: https://purl.stanford.edu/yg138wc6684
Collection
Stanford University, Department of Economics, Honors Theses
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- Contact
- sgujral@alumni.stanford.edu
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