Arnold Kling

Productivity, Progress, and Displacement

Arnold Kling, Great Questions of Economics
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The economic history lesson provided the theme for this swansong for the music distribution industry.

What is happening in music is a tremendous increase in the productivity of music storage and distribution, which will benefit consumers and music creators. By the same token, record stores and CD manufacturers will be displaced by this new technology. However, rather than express their resentment as nostalgia for outmoded business practices, the industry incumbents couch the issue in terms of copyright and intellectual property.

Discussion Question. Why have CD prices not been slashed as the recording industry tries to compete with Internet music distribution?

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