by Sherwin Rosen, is used to explain why a small number of the artists and creators in the market, such as the celebrity A-list actors and top pop singers Economics of the arts and literature or cultural economics (used below for convenience) is a branch of economics that studies the economics of creation, distribution, and the consumption of works of art, literature and similar creative and/or cultural products. For a long time, the concept of the "arts" were confined to visual arts (e.g., painting) and performing arts (music, theatre, dance) in Whe… The term "star system", coined by Sherwin Rosen, is used to explain why a small number of the artists and creators in the market, such as the celebrity A-list actors and top pop singers, earn most of the total earnings in a sector. Rosen's 1981 paper examined the economics of superstars to determine why "relatively small numbers of people earn enormous amounts of money and seem to dominate the fields in which they engage". Rosen argues that in superstar markets, "small differences in talent at the top of the distribution will translate into large differences in revenue." Rosen points out that "...sellers of higher talent charge only slightly higher prices than those of lower talent, but sell much larger quantities; their greater earnings come overwhelmingly from selling larger quantities than from charging higher prices". In cultural industries, the uncertainty about the quality of a product plays a key role in this. The consumer does not really know how good the product is, until they have consumed it (think of a movie), and the producer is confronted with the typical uncertainty in a cultural industry. The consumer looks for guidance in the price, reputation, or a famous name on the cover or poster. As the producer understands this using a famous director, actor or singer affects demand, they are prepared to pay a lot for a name considered a sign of quality (a star). Indeed, authors like Adler and Ginsburgh have given evidence that star status is determined by chance: in a musical contest, results were highly correlated with the order of performance. This randomness has been used to explain why the labor supply in the sector remains excessive: given the extreme gains of a star, and an irrational behaviour, or particular preferences, with respect to chance, unsuccessful artists keep trying, even when they are earning their money mostly in a different trade, such as waiting tables. A second argument is the possibility of intangible returns to artists' labour in terms of social status and lifestyle. For example, even a struggling DJ spends most of their time onstage on nightclubs and raves, which for some people is a desirable outcome.