nep-cul New Economics Papers
on Cultural Economics
Issue of 2009‒01‒03
seven papers chosen by
Roberto Zanola
University of the Piemonte Orientale

  1. Is There a Way for Old Industrial Districts to Become Attractive for Cultural Industry? The Case of Media Businesses in Halle (Saale), Germany By Martin T. W. Rosenfeld; Christoph Hornych
  2. Welfare Effects of Full-line Forcing Contracts in the Video Rental Industry By Justin Ho; Katherine Ho; Julie Holland Mortimer
  3. The Effects of Capacity on Sales Under Alternative Vertical Contracts By Ioannis Ioannou; Julie Holland Mortimer; Richard Mortimer
  4. Government Control of the Media By Scott Gehlbach; Konstantin Sonin
  5. Environmental diversity in recreational choice modelling By Angel Bujosa Bestard; Antoni Riera Font
  6. Regional Versus Individual Aspects of the Digital Divide in Germany By Schleife, Katrin
  7. The economic value of virtue By Fabio Mariani

  1. By: Martin T. W. Rosenfeld; Christoph Hornych
    Abstract: manufacturing have collapsed are trying to stimulate entrepreneurial activities of businesses in the cultural industry. The question is whether this strategy could be successful. This article examines the strategy of supporting the sector of Media Industry (´MI´) by policy makers in the region of Halle in East Germany, where a strong de-industrialization has taken place after the German reunification. Stimulated by the policy makers’ support measures, there actually was a remarkable development of MI. However, the number of MI firms and their employees did not further increase in recent years, after having reached a certain level. This illustrates the limits of political measures for turning a city’s path of industrial development voluntarily.
    Date: 2008–12
    URL: http://d.repec.org/n?u=RePEc:iwh:dispap:15-08&r=cul
  2. By: Justin Ho; Katherine Ho; Julie Holland Mortimer
    Abstract: An extensive theoretical literature on bundling examines its potential efficiency and anti-competitive effects. In this paper, we provide an empirical study of bundling in a supply chain, referred to as full-line forcing. Using an extensive dataset on contracts between video retailers and movie distributors, we identify and measure three effects of full-line forcing: market coverage, leverage, and efficiency. We estimate a structural model of demand and the cost of holding inventory. Using the estimated parameters, we examine the effects of delaying the introduction of full-line forcing contracts. We find that delay results in a welfare loss for firms and consumers.
    JEL: L0
    Date: 2008–12
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:14588&r=cul
  3. By: Ioannis Ioannou; Julie Holland Mortimer; Richard Mortimer
    Abstract: Retailer capacity decisions can impact sales for a product by affecting, for example, availability and visibility. Using data from the U.S. video rental industry, we report empirical estimates of the effect of capacity on sales. New monitoring technologies facilitated new supply contracts in this industry, which lowered the upfront cost of capacity and required minimum capacity purchases, thus strongly impacting stocking decisions. Under the traditional supply contract, capacity costs $44 per tape (avg) and the marginal tape produces 10.4 to 18.0 additional rentals. Under the new contract, capacity costs $7 per tape (avg) and the marginal tape produces 0 to 4.9 additional rentals.
    JEL: L0
    Date: 2008–12
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:14611&r=cul
  4. By: Scott Gehlbach (University of Wisconsin, Madison - Department of Political Science); Konstantin Sonin (New Economic School; Center for Economic and Financial Research (CEFIR); Centre for Economic Policy Research (CEPR))
    Abstract: We present a formal model of government control of the media to illuminate variation in media freedom across countries and over time, with particular application to less democratic states. The extent of media freedom depends critically on two variables: the mobilizing character of the government and the size of the advertising market. Media bias is greater and state ownership of the media more likely when the need for mobilization is large; however, the distinction between state and private media is smaller. Large advertising markets reduce media bias in both state and private media, but increase the incentive for the government to nationalize private media. We illustrate these arguments with a case study of media freedom in postcommunist Russia, where media bias has responded to the mobilizing needs of the Kremlin and government control over the media has grown in tandem with the size of the advertising market.
    Keywords: Media, special-interest politics, nondemocratic politics
    JEL: L82 L10 D72
    Date: 2008–12
    URL: http://d.repec.org/n?u=RePEc:cfr:cefirw:w0126&r=cul
  5. By: Angel Bujosa Bestard (Centre de Recerca Econòmica (UIB · Sa Nostra)); Antoni Riera Font (Centre de Recerca Econòmica (UIB · Sa Nostra))
    Abstract: The accuracy of environmental valuation studies relies, to a great extent, on the suitability of the proxy measures used to capture individuals’ preferences. While important advances have been achieved in last years concerning the characterization of the physical background in which recreational choices are made, Travel Cost Method applications have failed to consider the heterogeneity of landscape and the spatial configuration of land use. This paper presents an empirical application to forest recreation in Mallorca (Spain), implementing a random parameter logit model to evaluate —in terms of goodness-of-fit, model predictions and welfare measurements— the effects of environmental diversity on the recreational site-choice process.
    Keywords: Travel Cost Method, random parameter logit, recreation demand, environmental diversity, forests
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:pdm:wpaper:2008/5&r=cul
  6. By: Schleife, Katrin
    Abstract: This paper analyzes the regional dimension of the German digital divide. It studies the determinants of home Internet use in Germany on the level of counties as well as on the level of individuals. Based on two large data sets, the analyses show that population density itself cannot explain regional differences in Internet use rates. The results rather indicate that it is the different composition of individual characteristics between rural and urban populations that accounts for the regional digital divide. At individual level, the findings underline the importance of network effects.
    Keywords: digital divide, Internet use, network effects
    JEL: O18 O33 R20
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:7438&r=cul
  7. By: Fabio Mariani (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, IZA - Institute for the Study of Labor)
    Abstract: We model virtue as an asset on the marriage market : since men value virginity in prospective mates, preserving their virtue increases girls' chances of getting a "good" husband, and therefore allows for upward social mobility. Consistent with some historical and anthropological evidence, we find that the diffusion (and the social value) of virginity, across societies and over time, can be determined, among others, by income inequality, gender differences, social stratification and overall economic development. This is a further example of how cultural and moral values can be affected by economic factors.
    Keywords: Mating, marriage, cultural value, social classes, inequality.
    Date: 2008–12
    URL: http://d.repec.org/n?u=RePEc:hal:journl:halshs-00348928_v1&r=cul

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