nep-cul New Economics Papers
on Cultural Economics
Issue of 2007‒01‒13
three papers chosen by
Roberto Zanola
University of the Piemonte Orientale

  1. The Dynamics of Art Prices: The Selection Corrected Repeat-Sales Index. By Zanola, Roberto
  2. Utility in WTP Space: A Tool to Address Confounding Random Scale Effects in Destination Choice to the Alps By Ricardo Scarpa; Mara Thiene; Kenneth Train
  3. Advertising and competitive access pricing to internet services or pay-TV By Jean, JASKOLD-GABSZEWICZ; Didier, LAUSSEL; Nathalie, SONNAC

  1. By: Zanola, Roberto
    Abstract: The repeat-sales model controls quality by utilizing the transacted prices of the same items in di.erent time periods. However, this methodology suffers from non-randomness of the data, implying that a sample based only on repeat-sales items may not represent the population of properties. To address this potential problem, the Heckman two-stage procedure has been applied to a sample of Picasso prints over the period 1988-1995 as registered in the 1995 edition of the Mayer International Auction Records on CD-ROM. Empirical evidence shows that the selection corrected repeat-sales model yields substantially better goodness of fit than the estimated standard repeat-sales specification.
    Keywords: sample selection; Picasso; repeat sales; prints; price index
    JEL: C5 Z1
    Date: 2007–01
  2. By: Ricardo Scarpa (University of Waikato); Mara Thiene (University of Padua Viale dell’Universita`); Kenneth Train (University of California at Berkeley)
    Abstract: Destination choice models with individual-specific taste variation have become the presumptive analytical approach in applied nonmarket valuation. Continuous mixtures of taste distributions are often modeled using computationally convenient distributions based on the multivariate normal. Though conceptually appealing, empirically these often imply results with untenable distributions of willingness-to-pay in the population. Furthermore, interpersonal variation in the scale of the error may confound variation in taste intensities thereby producing biased WTP estimates. We compare estimates from random utility models that use normal and log-normal distributions first for taste intensities of destination attributes and then for WTPs. Estimates from simulated maximum likelihood and hierarchical Bayes approaches are compared. The results indicate that specifications in WTP space produce more reasonable features of implied WTP distributions for the population. This approach to specification of utility is hence deemed promising in applied nonmarket valuation.
    Keywords: mixed logit random utility parameters; random willingness to pay; travel cost method; destination choice modeling
    JEL: C15 C25 Q26
    Date: 2006–12–15
    Abstract: We study access pricing by platforms providing internet services or pay-TV to users while they allow advertisers to have access to these users against payment via ads or banners. Users are assumed to be ad-haters. It is shown that equilibrium access prices in the usersÕ market are increasing in the dimension of the advertising market : the larger the number of advertisers, the higher the access prices for both platforms.
    Date: 2006–09–29

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