TY - JOUR AU - Mortimer,Julie Holland AU - Nosko,Chris AU - Sorensen,Alan TI - Supply Responses to Digital Distribution: Recorded Music and Live Performances JF - National Bureau of Economic Research Working Paper Series VL - No. 16507 PY - 2010 Y2 - October 2010 UR - http://www.nber.org/papers/w16507 L1 - http://www.nber.org/papers/w16507.pdf N1 - Author contact info: Julie H. Mortimer Department of Economics Boston College 140 Commonwealth Avenue Chestnut Hill, MA 02467 Tel: 617-552-3676 Fax: 617-552-2308 E-Mail: julie.mortimer.2@bc.edu Chris Nosko Booth School of Business University of Chicago 5807 S. Woodlawn Ave Chicago,IL 60637 eBay Research Labs 2065 Hamilton Ave E-Mail: cnosko@gmail.com Alan T. Sorensen Department of Economics University of Wisconsin, Madison 6454 W.H. Sewell Social Science Bldg 1180 Observatory Drive Madison, WI 53706 Tel: 608/263-3867 E-Mail: sorensen@ssc.wisc.edu AB - Changes in technologies for reproducing and redistributing digital goods (e.g., music, movies, software, books) have dramatically affected profitability of these goods, and raised concerns for future development of socially valuable digital products. However, broader illegitimate distribution of digital goods may have offsetting demand implications for legitimate sales of complementary non-digital products. We examine the negative impact of file-sharing on recorded music sales and offsetting implications for live concert performances. We find that file-sharing reduces album sales but increases live performance revenues for small artists, perhaps through increased awareness. The impact on live performance revenues for large, well-known artists is negligible. ER -