Date Added: Aug 2010
The music industry has been going through fundamental technology driven transformation altering its competitive structure. Up-to-date, intellectual property rights and new forms of music distribution have been the main focus of academic research. In this working paper, the authors examine another revolutionary change taking place in this industry. This concerns the increasing power of "Intuitive experts", who are able to intuitively recognize new talent at disproportionally high success rates, without resorting to rationalistic choice models. This capability gives "Intuitive experts" a difficult to imitate advantage in selecting new talent.