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on Cultural Economics |
| By: | Anna Alberini (AREC, University of Maryland); Alberto Longo (Queen's University Belfast) |
| Abstract: | We use contingent valuation to place a value on the conservation of built cultural heritage sites in Armenia. When we present the hypothetical scenario in the questionnaire we spell out what would happen to the monuments in the absence of the government conservation program. We posit that respondents combine such information with their own prior beliefs, which the questionnaire also elicits, and that the WTP for the good or program is likely to be affected by these updated beliefs. We propose a Bayesian updating model of prior beliefs, and empirically implement it using the data from our survey. We find that uncertainty about what would happen to the monument in the absence of the program results in lower WTP amounts. |
| Keywords: | Valuation of Cultural Heritage Sites, Non-Market Valuation, Contingent Valuation, Bayesian Updating, Prior Beliefs |
| JEL: | Z10 |
| Date: | 2007–04 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2007.36&r=cul |
| By: | Tobias Regner (University of Jena, School of Busniess and Economics); Javier A. Barria (Intelligent Systems & Networks group, Department of Electrical and Electronic Engineering, Imperial College London) |
| Abstract: | The paper analyses the payment behaviour of customers of the online music label Magnatune. Customers may pay what they want for albums, as long as the payment is within a given price range ($5-$18). Magnatune’s comprehensive pre-purchase access facilitates music discovery and allows an informed buying decision setting it apart from conventional online music stores. On average customers pay $8.20, far more than the minimum of $5 and even higher than the recommended price of $8. We analyse the relationship between artists/labels and customers in online music. We consider social preferences, in particular concerns for reciprocity. The resulting sequential reciprocity equilibrium corresponds to the observed pattern of behaviour. We conclude that Magnatune’s open contracts design can encourage people to make voluntary payments and may be a viable business option. |
| Keywords: | social preferences, reciprocity, music industry, experience goods, psychological game theory, emotions |
| JEL: | C24 C70 C93 D82 L82 |
| Date: | 2007–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2007-011&r=cul |
| By: | Vitor Trindade (Department of Economics, University of Missouri-Columbia); Johannes Moenius |
| Abstract: | This paper reviews issues that lie at the intersection between intellectual property rights (IPR) and network effects, especially in the context of the global economy. Some of the relevant questions are: (1) How do IPR influence the provision of goods exhibiting network effects? (2) How do network effects in turn influence the creation of intellectual property? And (3) how do aspects of the global economy interact with both IPR and network effects? We synthesize what is known from the existing literature to answer these questions. |
| Keywords: | Intellectual Property Rights, Network Effects, Globalization, Standards, Social Networks, Software Piracy |
| JEL: | D85 F12 F13 F14 L14 O34 |
| Date: | 2007–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:umc:wpaper:0705&r=cul |