The Importance of Being Independent: The Role of Intermediaries in Creating Market Categories

This article explores how the commentary of intermediaries – third-party entities that do not have direct economic stakes in the sales of goods – can contribute to the creation of new market categories comprising preexisting but neglected and undervalued goods. Specifically, I study how the Sundance Institute facilitated the creation of a market for independent cinema in the United States, suggesting that intermediaries create market categories by defining boundaries, generating criteria of evaluation, and setting standards for measuring and establishing hierarchies of quality, which help audiences understand and value the category. The study, thus, adds nuance to our understanding of markets and categories.