Updates

  1. Person pages list letters, writing, profiles and links as sortable tables with filters, and show each person's companies as links; Fund letters show each letter's description in its own column.
  2. Experts show a checked job title and a short description of each person; 30 more people have photographs.
  3. Every company, fund, university and publication the experts work for has a page listing the people there.
  4. Fund letters show each letter's thesis and filter by it; 225 person pages list the essays, columns and newsletter issues the person wrote.
  5. Person pages list every essay and newsletter issue a person wrote, and their own books as a table in List view.
  6. Recommends shows the five largest kinds of book and the rest under More; browse pictures load sooner.
  7. Podcasts and talks link the original episode, filter by Audio and video or Press, and list each publisher once.
  8. Pages are wider, Recommends has List and Grid, and a filter clicked again turns off.
  9. Book cards sit in a ruled grid with Open Library and Goodreads links and each book's one-line note.
  10. Funds is now Investors; each investor's styles are buttons that filter the table.
  11. Podcasts and talks on a person's page filter by year and publisher and show as a list or a grid of pictures.
  12. Quotes show only people's own words: 472 summaries written by list sites are gone.
  13. Country pages open from Browse again, and every link on the shelf lands on a page.
  14. Subject and person pages show their sections as tabs, and each book appears once on a person's page.
  15. Book cards show the quote, who said it and the source; grids show five cards to a row.
  16. On a phone, a menu holds the sections, search, Updates, Feedback and dark mode.
  17. Feedback takes a screenshot of the page with no browser prompt, opens a screenshot full size when you click it, and clears itself once sent.
  18. Book cards are centred, search names the topic each book sits in, and any text cut short shows whole on hover.
  19. Search groups its results by kind: people, companies, geographies, subjects, topics, books, funds, fund letters and papers.
  20. The Books table lists who recommended each book by name, and the browser tab names the section you are in.
  21. Feedback can take a screenshot of the page, or one you paste or choose, and opens in the corner beside Updates.
  22. Each rail button reopens its section where you left it, and Browse, Table and People show on every book and subject page.
  23. Filters grey out choices that hold nothing instead of hiding them, and Books › People filters by authors or recommenders.
  24. Feedback takes a subject line and up to three screenshots.
  25. Biographies are grouped by the person they are about: 41 new pages, from Abraham Lincoln to Lee Kuan Yew.
  26. Sport splits into 23 sports, and Religion into one topic per faith.
  27. Book lists show as cards: the cover, one recommendation quote and every recommender by name.
  28. Seventeen subjects that had two or three pages under different names now have one page each.
  29. Every page lists its Experts as authors and recommenders, with a link to them on the Experts tab.
  30. Economics, Financial history, Financial panics and Accounting are subjects of their own, with one page per financial crisis.
  31. Book, person and subject pages open inside the app, so the tabs stay in view.
  32. 996 more book covers, and photographs or logos for 227 more people and companies.
  33. Books › Browse shows every subject as cards, and the rail holds Fund letters, Papers, Experts, Books and Funds.
  34. Every topic over 150 books splits into narrower topics, each with a page of its own.

Send feedback

What is it?
Screenshots, up to 3 (optional)
or paste one with Ctrl+V

We use your email only to reply to you.

Rockonomics

Rockonomics

Alan B. Krueger
2019
T2 336 pages · about 5h 36m to read Open Librarygoodreads

An economist on superstar effects and the economics of the music industry.

Summary

Krueger, a labour economist who chaired the Council of Economic Advisers, applied economics to the music industry, using it as a setting where the mechanisms shaping the wider economy are visible in concentrated form. He worked from industry data, from a survey of musicians and from interviews with artists and executives.

The central mechanism is superstar economics, drawn from Sherwin Rosen. When a performance can be reproduced at near-zero cost and consumers prefer the best available performer to a slightly worse one, a tiny difference in quality produces an enormous difference in income. Krueger documents the resulting concentration: a very small share of artists earns most of the industry's income, and the concentration has increased as reproduction and distribution costs fell. He argues that the same mechanism now operates across the economy as technology extends the reach of top performers in many fields.

The pricing material is the most practical. Concert tickets have historically been priced below the market-clearing level, which transfers value to scalpers and to the secondary market, and Krueger examines why artists accept this, including the effect on fan goodwill and on merchandise and future tour sales. He covers bundling, price discrimination through tiered seating and packages, and the Bowie theory, named after David Bowie's observation that recorded music would become a loss leader for live performance, which is what happened.

Other chapters cover the economics of streaming and how royalties are divided, the role of luck and cumulative advantage in which songs succeed, and Krueger's estimates of what musicians actually earn.

The book was completed before Krueger's death in 2019 and is written for general readers, so the economics is presented without formal apparatus. The industry data on artist income is inherently incomplete, and the streaming economics have continued to shift since publication.

Key takeaways 7

  1. Small differences in perceived quality produce enormous differences in income when performance can be reproduced at near-zero cost.
  2. Income concentration in music increased as reproduction and distribution costs fell, which is the opposite of what democratisation predicted.
  3. Concert tickets are priced below market-clearing levels, which transfers value to the secondary market rather than to the artist.
  4. Recorded music became a promotional loss leader for live performance, reversing the industry's historical revenue structure.
  5. Luck and cumulative advantage determine which songs succeed, as demonstrated by experiments where identical songs performed differently in different social conditions.
  6. Bundling and tiered pricing let sellers extract more from customers with different willingness to pay than a single price can.
  7. The distribution of musician income is extremely skewed, and the median working musician earns very little.

Who should read it

Founders and operators in content, media and marketplace businesses who want the economics of superstar markets and below-market pricing explained through a concrete industry.

Similar books 6

Chosen by shared topics, the entries that hold them, and the people who recommended both.

Donald S. Passman · 1991

How the music business works in contracts and money, from a music lawyer.

Rebecca Giblin, Cory Doctorow · 2022

How intermediaries capture creative-work rents; the bear case for creators.

Steven D. Levitt, Stephen D. Levitt, Stephen J. Dubner · 2005

Incentives and data applied to cheating teachers, sumo wrestlers and other puzzles.

Tom Wainwright · 2016

The drug trade as a business: how cartels handle supply chains, staff and branding.

Steven D. Levitt, Stephen J. Dubner · 2009

Sequel applying incentive analysis to climate, crime and altruism

“I recommend this book to anyone who reads nonfiction. It is very well written and full of great insights.” — Bill Gates

Source: Gates Notes review of SuperFreakonomics

Recommended by: Bill Gates, Mohnish Pabrai

Thomas Sowell · 1999

Thomas Sowell's deliberately introductory survey of how prices, incentives, and tradeoffs work across housing, labor, international trade, and discrimination. Dense with empirical examples. Its main contribution to this list is showing the gap between policy intentions and policy consequences.

Where it sits in the reference 3

Assets
Industries
Economics

Topics

EconomicsSociology and CultureConsumer culture and cultural criticism