After a long day, I like to drop the top in my mustang and blast Timeless by The Weeknd-aka Abel Makkonen Tesfaye (and Playboi Carti). It’s a whole vibe-thanks in part to producers Pharrell Williams, Mike Dean, Ojivolta, and Twisco. The Weeknd has a large fan base, but over the last few years, he has become one of the music industry’s top streaming artists which has made him incredibly wealthy thanks to billions of streams. With more streams, like A LOT more, this has increased the demand for The Weeknd’s concert tours. The average price for a concert ticket is $447.81, the “cheap” ticket options start as low as $113.90, and for the VIP Experience, it can cost as much as $1,824.30 according to Ticket Smarter.

In economics, “winner-take-all markets” explains how superstars like The Weeknd influence the media and consumers directly. Consumer spending ends up going towards a select few of the top talent. The incredibly strong demand for The Weeknd’s music reflects his MRP, or marginal revenue product. MRP refers to the change in a firm’s (or in this case, The Weeknd’s) total revenue when he employs 1 additional unit of a resource. It’s important to note that when there is an increase in the productivity of a resource, demand will increase for that resource, and similarly when there is a decrease in productivity, this will reduce the demand for a resource.  How long will The Weeknd be at the top of his game? I suspect we will see him take on more acting roles, but his music will always be Timeless. 

Discussion Questions:

  1. Could “winner-take-all markets” contribute to income inequality in the U.S.? Yes, or no? Explain.
  2. What other musicians, actors, or sports stars would be great examples to represent “winner-take-all markets”? Explain.