nep-cul New Economics Papers
on Cultural Economics
Issue of 2006‒09‒23
three papers chosen by
Roberto Zanola
Universita degli Studi del Piemonte Orientale

  1. Failure to Meet the Reserve Price: The Impact on Returns to Art By Alan Beggs; Kathryn Graddy
  2. Migration and innovation : does cultural diversity matter for regional R&D activity? By Niebuhr, Annekatrin
  3. Public and Private Activity in Commercial TV Broadcasting By Hansen, Bodil O.; Keiding, Hans

  1. By: Alan Beggs; Kathryn Graddy
    Abstract: This paper presents an empirical study of paintings that have failed to meet their reserve price at auction. In the art trade it is often claimed that when an advertised item goes unsold at auction, its future value will be affected. We have constructed a new dataset specifically for the purpose of testing this proposition. To preview our results, we find that paintings that come to auction and failed return significantly less when they are eventually sold than those paintings that have not been advertised at auction between sales. These lower returns may occur because of common value effects, idiosyncratic downward trends in tastes, or changes in the seller`s reserve price.
    Keywords: Reserve Prices, Burning, Bought-in, Art, Auctions
    JEL: D44 L82
    Date: 2006
  2. By: Niebuhr, Annekatrin (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "Recent theoretical research deals with economic costs and benefits of cultural diversity related to immigration. However, empirical evidence regarding the impact of cultural diversity on economic performance is still scarce. This paper investigates the significance of cultural diversity of the workforce on innovation output for a cross-section of German regions. The findings indicate that cultural diversity indeed affects innovative activity. The results suggest that differences in knowledge and capabilities of workers from diverse cultural backgrounds enhance performance of regional R&D sectors. However, education levels are also important. Diversity among highly qualified employees has the strongest impact on innovation output." (author's abstract, IAB-Doku) ((en))
    Keywords: Einwanderung - Auswirkungen, kulturelle Faktoren, Forschung und Entwicklung, Innovationspotenzial, Innovationsfähigkeit, regionale Faktoren, Arbeitskräftestruktur, regionale Herkunft, ausländische Arbeitnehmer, Wissensarbeit, Wissenstransfer, regionale Disparität, Arbeitsmigration - Auswirkungen, Migranten, Qualifikationsniveau, Patente - Quote, regionaler Vergleich
    Date: 2006–08–11
  3. By: Hansen, Bodil O. (Department of Economics, Copenhagen Business School); Keiding, Hans (Department of Economics, Copenhagen Business School)
    Abstract: We consider a model of commercial television market, where private broadcasters coexist with a public television broadcaster. Assuming that the public TV station follows a policy of Ramsey pricing whereas the private stations are profit maximizers, we consider the equilibria in this market and compare with a situation where the public station is privatized and acts as another private TV broadcaster. A closer scrutiny of the market for commercial television leads to a distinction between target rating points, which are the prime unit of account in TV advertising, and net coverage, which is the final goal of advertisers. Working with net coverage as the fundamental concept, we exploit the models of competition between public and private price and quantity in order to show that privatization of the public TV station entails a welfare loss and results in TV advertising becoming more expensive.
    Keywords: TV broadcasting; imperfect competition; Ramsey pricing; welfare comparison
    JEL: L11 L33 L82
    Date: 2006–09–14

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