Deep Work: Rules for Focused Success in a Distracted World · chapter 1 · id deep-work-c1-05-technology-creates-winner-take

“Technology creates winner-take-all markets where the best person in a field captures disproportionate rewards, based on Sherwin Rosen's 1981 'Economics of Superstars' model.”

holdsconfidence: high⚠ extracted by pipeline, re-audit pending

Receipts

Rosen (1981) -- The Economics of Superstars, American Economic Reviewsource alive

When imperfect substitution among sellers is combined with scale economies of joint consumption, talented persons command very large markets and incomes. Income differentials are much higher than talent differentials.

AEA -- Testing the Superstar Hypothesis with TV Datasource alive

When local TV stations became popular in the 1940s-50s, entertainment jobs declined ~13%, with middle-income jobs suffering heaviest losses -- as predicted by Rosen's theory.

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