The Rise and Fall of the Superstar

One obvious source of high end inequality is what's known in the business as the "superstar effect." If there were no television and the only source of NBA revenue was direct ticket sales, in-game concessions, and apparel sales then LeBron James would earn a much lower income. Of course television has been with us for a long time. But in the postwar decades it was a rather modest affair—three national television networks, scattered independent stations, spotty reception. Over time we've seen enormous blossoming of broadcast technology and also an enormous globalization of media. Now when LeBron plays he can be seen by fans in Manilla and Manchuria as well as Miami.