The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Music Markets, Economics of

  • Frederic M. Scherer
Reference work entry


With the growth of economic prosperity, the demise of feudalism, and the weakening of Western religious institutions, markets for music have been transformed radically. By the 19th century, freelance composition and performance endeavours outweighed the employment of musicians by churches and noble courts. Further changes came from the invention of electrical and then electronic means of recording and disseminating music. The emergence of copyright for musical works strengthened economic incentives for the composition of music.


Baumol’s cost disease Copyright Music markets Superstars 

JEL Classifications

L1 Z11 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Frederic M. Scherer
    • 1
  1. 1.