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Economics, Consumer Psychology, and Music

Given the current state of the music industry, there are a lot of people in all aspects of the business who want to learn as much as they can about how to remain successful in a rapidly changing business environment. In addition, even musicians themselves are embracing the notion that their music is a business that they need to understand and take control of.

When one takes a close look at the fields of economics and consumer psychology, it becomes clear that nerdy social scientists have plenty to say that is relevant to the music industry. It's entirely possible for musicians and music industry professionals to make the structure of the industry and the features of consumer psychology work for them rather than against them, but in order to do so they need to learn a little bit about how both economists and consumers think.

(for an overview on consumer psychology and music, see http://www.thembj.org/2012/05/starbucks-or-pennies-a-musicians-dilemma-2/)

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Jodi Beggs, Economist, Northeastern University


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