Sunk Costs and the Dynamics of Creative Industries

  title={Sunk Costs and the Dynamics of Creative Industries},
  author={G. Bakker},
This chapter examines the long-run evolution of modern entertainment industries such as the film and music industries. It investigates ways to conceptualise and quantify the subsequent waves of creative destruction, and investigates specifically how sunk costs affect the evolution of the industry through its interaction with variety, market integration, product differentiation and price discrimination, and how old entertainment formats almost never became extinct. It finds that within this… Expand

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