nep-cul New Economics Papers
on Cultural Economics
Issue of 2005‒04‒24
four papers chosen by
Roberto Zanola
Universita degli Studi del Piemonte Orientale

  1. Art economics: a new approach By Aldo SPRANZI
  2. Flexibility as an Instrument in Digital Rights Management By Dirk Bergemann; Thomas Eisenbach; Joan Feigenbaum; Scott Shenker
  3. Combining Actual and Contingent Behavior to Estimate the Value of Sports Fishing in the Lagoon of Venice By Anna Alberini; Valentina Zanatta; Paolo Rosato
  4. Economic Valuation of On Site Material Damages of High Water on Economic Activities based in the City of Venice: Results from a Dose-Response-Expert-Based Valuation Approach By Paulo A.L.D. Nunes; Margaretha Breil; Gretel Gambarelli

  1. By: Aldo SPRANZI
    Abstract: This paper presents a new concept of art economics, here understo od as an economics of the diffusion of artistic knowledge. Our th esis is that, in order to solve problems linked to public funding of the arts and to the efficiency of the culture industry, the e conomist has to set foot on the terrain of aesthetics and, with c omplete autonomy, has to build for himself a set of aesthetic var iables to be applied to an industrial economic model. This impli es that the art economist has to concern himself with art, which, paradoxically, contrasts markedly with the present economic trad ition. The legitimation of the aesthetic variables selected occu rs empirically, with reference to specific works of art, which th e economist is able to evaluate by relying simply on his competen ce as an art consumer. Art economics, thus understood, has there fore a marked consumerist connotation. The art economist is a def ender of art-consumer rights, which are presently trampled on by the inefficiency of the culture industry. This working paper for ms part of the forthcoming publication: A. SPRANZI, Economics of the Arts. A New Approach to Art Economics, Unicopli-CUESP, Milano (
  2. By: Dirk Bergemann (Cowles Foundation, Yale University); Thomas Eisenbach (Dept. of Economics, University of Munich); Joan Feigenbaum (Dept. of Computer Science, Yale University); Scott Shenker (ICSI and Dept. of Electrical Engineering and Computer Science, University of California, Berkeley)
    Abstract: We consider the optimal design of flexible use in a digital-rights-management policy. The basic model considers a single distributor of digital goods and a continuum of consumers. Each consumer can acquire the digital good either as a licensed product or an unlicensed copy. The availability of (or access to) unlicensed copies is increasing both in the number of licensed copies and in the flexibility accorded to licensed copies. We thus analyze the optimal design of flexibility in the presence of unlicensed distribution channels (the “greynet”). We augment the basic model by introducing a “secure platform” that is required to use the digital good. We compare the optimal design of flexibility in the presence of a platform to the one without a platform. Finally, we analyze the equilibrium provision when platform and content are complimentary goods but are distributed and priced by different sellers.
    Keywords: Digital Rights Management, Platform, Flexibility, Piracy
    JEL: C79 D42 L15
    Date: 2005–04
  3. By: Anna Alberini (University of Maryland); Valentina Zanatta (DICAS, Politecnico di Torino and Fondazione Eni Enrico Mattei); Paolo Rosato (DIC, Università di Trieste and Fondazione Eni Enrico Mattei)
    Abstract: This paper reports the results of a Travel Cost Method (TCM) study about the recreational use of the Lagoon of Venice for sports fishing. In April-July 2002, we conducted a mail survey of anglers with valid licenses fishing on the Lagoon of Venice to gather data on their fishing trips, behaviors and expenditures over the previous year. We also asked questions about trips that would be undertaken under hypothetical changes in the price of a trip and/or in the catch rate. Actual and hypothetical trips are combined to estimate single-site TCM demand function for trips. We propose several models to test whether it is acceptable to pool hypothetical and actual trip data, focusing on the respondent heterogeneity in the contingent behavior questions. Our models suggest actual and contingent behavior are driven by the same demand function, and can be pooled for estimation purposes. We use this estimated demand function, and its shift when the catch rate is improved, to compute angler surplus at the current catch rate and the change in surplus accruing from a 50% improvement in the catch rate. For the average angler in our sample, the former is about €1,700 a year, while the latter is about €2,800.
    Keywords: Sports fishing value, Travel cost method, Environmental improvement
    JEL: Q26 Q51
    Date: 2005–03
  4. By: Paulo A.L.D. Nunes (University of Venice, Fondazione Eni Enrico Mattei and Free University); Margaretha Breil (Fondazione Eni Enrico Mattei); Gretel Gambarelli (University of Venice, Fondazione Eni Enrico Mattei)
    Abstract: The paper focuses on the economic assessment of damages caused by high water in the city of Venice. In particular, we focus our attention on a valuation exercise that addresses the estimation of monetary, short period, on-site damages due to high water events on the different business activities located in Venice. On-site damages include both mitigation costs, which refer to all types of financial expenditure undergone to avert physical and material damages caused by flooding, and remediation costs, i.e. costs to be sustained for maintenance and substitution of affected building elements. Hence, the present study can be considered as a pioneering attempt to analytically quantify, from an economic point of view, on-site damages from high water. An integrated dose-response modelling and an expert-based valuation approach have been selected as the most suitable economic valuation methodology to shed light on the on-site damages. The main focus of the work is to assess dose-response relationships, which are able to describe the physical effects of high water on the different on-site damage categories, including inner and front doors maintenance, cleaning of pavements and maintenance of the walls. Bearing in mind such an economic valuation framework, we proceed with the estimation of on-site damages not only for the present high water situation (business as usual) but also extend the valuation exercise to three additional high water scenarios: (1) a climate change scenario; (2) a high water protection scenario; and, (3) a combined climate change and protection scenario. Estimation results show that the welfare loss due to on-site, short-term damages supported by the business activities ranges from 3.41 to 4.73 million Euro per year, respectively for the business as usual and climate change scenarios. Finally, we can conclude that the introduction of a public policy protection mechanism that defends the city of Venice from any flooding above 110 cm above the Punta della Salute Tidal Datum, such as the MOSE, will reduce the on-site damages supported by the business activities up to 2.87 million Euro per year.
    Keywords: High water damages, Venice, Economic valuation
    JEL: C29 Q25
    Date: 2005–04

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