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on Cultural Economics |
| By: | Francisco Alcalá (Universidad de Murcia. Departamento de Fundamentos del Análisis Económico, Campus de Espinardo); Miguel González-Maestre (Universidad de Murcia. Departamento de Fundamentos del Análisis Económico, Campus de Espinardo) |
| Abstract: | We analyze artistic markets considering three key distinctive features that have been overlooked by the standard analysis on intellectual property. These features are the dynamic link between the current number of young artists and future high-quality artistic creation, Rosen’s superstars phenomenon, and the role played by promotion costs. Introducing them into an overlapping-generations model brings about a new perspective on the consequences for artistic creation of changes in the copyright term, progress in communication technologies favoring market concentration by stars, and the enlargement of markets. The conventional result that longer copyrights always stimulate artistic creation only holds as a particular case. |
| Keywords: | superstars, copyrights, innate abilities, allocation of talent. |
| JEL: | J44 J62 L82 O34 |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:iei:wpaper:0606&r=cul |
| By: | Gomes, Orlando |
| Abstract: | The paper adapts a static model of television advertising into a dynamic scenario. In its original form, the model consists on a profit maximization problem of a television network working in a competitive environment. The network sells commercial time to advertisers and tries to minimize the effects of viewers’ aversion to ads. Viewers are assumed heterogeneous with regard to the preferences over the types of products companies sell through ad time. Into this framework we introduce an intertemporal rule reflecting the possible preference changes of consumers (these are boundedly rational and their utility for different types of products varies over time). The introduction of the intertemporal rule originates interesting dynamic results, namely in what concerns the evolution over time of crucial variables like the total time of broadcasting that networks allocate to advertising or the amount of revenues that satisfies the profit maximization condition. As in the original model, attention will be given to the possibility, that cable television allows, of ad addressability. |
| Keywords: | Television advertising; Networks’ profit maximization; Heterogeneous viewers; Ad addressability; Bounded rationality; Nonlinear dynamics. |
| JEL: | L82 C61 M37 |
| Date: | 2006–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:2847&r=cul |