Over at Economix, Princeton economist Alan Krueger weighs in on how to measure and evaluate the popularity or success of popular musicians.
To an economist, the most popular artist is the one who would sell the most tickets at a given price. That is, if all artists charged the same price, whoever would attract the largest audience would be the most popular. Likewise, the most popular author is the one who sells the most books at a given price. Demand is higher for some artists and authors than others.
But herein lies the rub: The price of concerts (and books) varies. If Bruce Springsteen charges a lower price than Madonna, his revenues may well be lower even if he draws more fans.
Only in the special case where an increase in price exactly offsets a reduction in the number of tickets sold would gross revenue measure the popularity of an artist. That is, if artist A sells 10 percent fewer tickets by charging 10 percent more, gross revenue could be used as a measure of popularity.
Another consideration is the number of concerts the performers are willing to supply. Celine Dion may have been willing to perform more shows than Bruce Springsteen, accounting for her higher revenues.
Finally, unlike book sales, concert fans cannot always buy a ticket at the list price. Ideally, the revenue collected in the secondary resale market — by scalpers, for example — should be included in the rankings of artists as well.
For those so inclined, a longish but very interesting paper on the subject with Marie Connolly is here.