ABSTRACT

The most preponderant in recent times has been the issue of downloading and streaming of music. From a purely mathematical point of view, it is logically possible that right now there is too much classical and folks/roots and jazz music and not enough hip hop and heavy metal. The case for market failure derives from the presence of significant elements of monopoly and the presence of both positive and negative externalities. Musical education, via computers which are already in schools and pupils homes is potentially very cheap. The external benefits of school musical activity may also be in terms of social capital. Ensemble playing is an activity in which people must learn to rely on each other and develop roles and structures which may prove useful in later economic life. Recorded music, musical equipment and live performances are commodities. However, people have relationships to them which extend beyond price and cost.