First, Professors Baumol and Bowen (and your columnist) were correct to argue that as living standards increase those wishing to attend live performances will face higher ticket prices, absent government subsidy. The recently announced agreement increasing the base pay of the New York Philharmonic musicians to above $200,000 a year will certainly result in higher ticket prices in future. But given the impressive technological changes we have experienced in recording and diffusion of music over the last half-century, most music lovers have no need to attend live performances. Judging by recent Taylor Swift concerts, live music is becoming the 21st century’s version of “Veblen goods”, a luxury product for which demand increases as the price rises. Ira SohnEmeritus Professor of Economics and Finance, Montclair State University, Upper Montclair, NJ, US

Source: New York Times October 14, 2024 12:58 UTC