Talk:Superstar effect
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[edit]The standard definition, due to Sherwin Rosen, is explained below -- article does not mention this, which is how the term in understood and used in economics. Article should be updated to include this reference and explanation
The Superstar Effect: being the best, even slightly, triggers huge advantages
In a 1981 paper published in the American Economics Review, the economist Sherwin Rosen worked through the mathematics that explains why superstars, like Pavarotti, reap so many more rewards than peers who are only slightly less talented. He called the phenomenon, “The Superstar Effect.”
Though the details of Rosen’s formulas are complex, the intuition is simple: imagine a million opera fans who each have $10 to spend on an opera album. They’re trying to decide whether to buy an album by Florez or Pavarotti. Rosen’s theory predicts that the bulk of the consumers will purchase the Pavarotti album, thinking, roughly: “although both singers are great, Pavarotti is the best, and if I can only get one album I might as well get the best one available.” The result is that the vast majority of the $10 million goes to Pavarotti, even though his talent advantage over Florez is small.
Asaduzaman (talk) 15:38, 24 September 2018 (UTC)
Wiki Education Foundation-supported course assignment
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This article was the subject of a Wiki Education Foundation-supported course assignment, between 26 January 2021 and 28 April 2021. Further details are available on the course page. Student editor(s): Cronin.patrick. Peer reviewers: MattAnderson30.
Above undated message substituted from Template:Dashboard.wikiedu.org assignment by PrimeBOT (talk) 18:30, 18 January 2022 (UTC)