The Low End of High-Tailed “Toys.” Sequences of Markets for Cultural Goods

Abstract

The parametric form of skewed probability distributions is a function that increases in value with the power of its exponent—a power-law function. Such distributions have been identified in a wide range of cultural goods markets. Revenue distributions clearly follow a power-law function in the high tail, but there is less clarity about the low end of cultural goods markets. This study is based on empirical investigations of revenue distribution, or other measures of economic value, in markets for a specific kind of cultural good. It presents evidence from markets for immaterial goods such as music, books, films, and visual content. It also reports on markets for events, paintings, antiques, and collectibles. The findings suggest a dynamic upward and downward value traffic, organized in sequences of interlocking markets. In the future-oriented upward traffic, new products move from the low end into the refinement processes of private and public valorizing organizations, until a tiny fraction reaches the attention of larger and wealthier audiences. In the past-oriented downward traffic, products move from the high end of museum-quality objects through a succession of traders until they dissipate among the items at flea markets and rummage sales.