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When recording devices were first invented more than 100 years ago, musicians could suddenly supply their music to large audiences at low cost. How do you suppose this development affected the income of the best musicians? How do you suppose it affected the income of average musicians?
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Yi Chun Lin
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Chapter 19
Earnings and Discrimination
The Economics of Labor Markets
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they were taking a look at the increase or decrease on incomes of the best musicians and average musicians as a result of the invention of recording devices, which allowed these musicians to supply their music to audiences at very low costs, essentially allowed these audiences to listen to their music at these low cost. So really, how did the incomes of these musicians change dependent depending upon their ranking within the music world? Right. If they're the best musician, how were their incomes have been impacted? Well, let's think through this, people like to listen to the better musicians. They're the best for a reason, people really, really like them. So these better musicians would see an increase in the demand for their music because it would be so easily accessible and at such a low cost. So these best musicians would probably see quite an increase in their incomes as a result of this because they're going to be able to sell far more music than they could have prior to. Right. However, if we're looking at these average musicians, well, you might think that they would also see an increase in their incomes. However, because they're now competing with these best musicians in terms of these recordings that they're sending out to audiences, the audiences almost always going to choose this better musician to listen to. Their, going to purchase the recordings of the best musicians over the recordings of the average musicians. So we're probably going to see these average musicians hurt in a sense, we're going to see most likely a decrease in their incomes as a result of this because they're now competing with the best musicians in terms of um audience demand in ways that they weren't prior to. Now, we're talking about 100 years ago when when these recording devices were first implemented. And so prior to the invention of the recording devices, people can listen to these musicians only in person. So competing against the best musicians really wasn't all that hard because there's only so many of them, people still wanting to listen to music so they're going to they're going to settle for the average musicians. However, now that people don't need this in person music to actually listen to it, now that they can just get their copy of it and listen to it on a record player. Well now they're all just going to choose the best musicians. So are better musicians are going to see an increase in their incomes as a result of this increase in demand, but our average musicians are going to experience this decrease in demand and thus a decrease in their incomes as well.
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