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on Cultural Economics |
| By: | CEULEMANS, Cédric (Université Libre de Bruxelles, ECARES, B-1050 Brussels, Belgium); GINSBURGH, Victor (Université Libre de Bruxelles, ECARES, B-1050 Brussels, Belgium and Université catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium); LEGROS, Patrick (Université Libre de Bruxelles, ECARES, B-1050 Brussels, Belgium) |
| Abstract: | Members of a rock and roll band are endowed with different creativity. They match and eventually obtain credit for song writing as well as a share of the returns from sales. More creative members increase the probability of success but may also claim a larger share of the pie. In our theoretical model, the nature of matching (postive or negative assortative) as well as the covariation between the probability of having a “hit” and the dispersion of credits given to individual members are a function of the completeness of contracting. When members adopt a “gentleman’s agreement” to share credits equally, the covariation between the probability of a hit and the dispersion of credits is negative, which is the consequence of positive assortative matching in creativity. The data show that the relation between dispersion and success is significantly negative, and that rock bands are thus likely to sign incomplete contracts. |
| Keywords: | overlapping generations, resource management, common pool resource, spatial interdependence, strategic behaviour, cooperative behaviour |
| JEL: | H21 K11 Q20 |
| Date: | 2010–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2010074&r=cul |
| By: | Douglas James Hodgson; Aylin Seckin |
| Abstract: | Although the market for Canadian paintings is now of substantial magnitude, with several works having recently sold for well over a million dollars, it remains true that with very few exceptions, the works of Canadian painters are bought and sold only in Canada and held only by Canadian collectors. This market can thus be viewed as almost exclusively local, and it is therefore not clear that there should be any linkage between price movements for Canadian art and those for the mainstream international market in old master, impressionist, and modern art. This paper investigates the presence and nature of such time series dependence econometrically, both in terms of long term trends as reflected in the co-integrating relationship between Canadian and the international market, and in terms of short-run co-movements as represented in correlations. The possibility that the local market "follows" the international one is also considered through an analysis of Granger-Causality. For Canadian art prices we use a new hedonic index that has been computed using an updated version of the data set of Hodgson and Vorkink (2004), while for the international prices, we use an index provided by Mei and Moses. <P> |
| Keywords: | Alternative investments, Economics of art markets, Market for paintings, Time series analysis, CAPM, |
| JEL: | Z11 G11 |
| Date: | 2011–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2011s-14&r=cul |
| By: | Douglas James Hodgson |
| Abstract: | We conduct an empirical analysis of the effect on the auction price of a Canadian painting of the age of the painter at the time of creation of the painting. We consider several hundred artists, active over the entire history of Canadian art, who are pooled in the estimation of a hedonic regression in which a polynomial function in age enters as a regressor along with several other control variables. We then consider the possibility that the age-price relationship has changed over time by : (a) estimating separate age-price functions for three generational groups of artists - those born before 1880, between 1880 and 1920, and after 1920 and thus coming of age in the world of post-war “contemporary art” ; and (b) estimating a parameterization where the shape of the age-price profile is permitted to change continuously depending on the year of birth of the artist. Our principal result is that artists born more recently tend to “peak” earlier in their careers than those of previous generations. As pertaining to artists born after 1920, this result is consistent with the findings of Galenson (2000) for modern American painters, but we find that the phenemenon applies over longer periods of art history. <P> |
| Keywords: | Auction, Age-price profiles, Canadian painting, hedonic regression, |
| Date: | 2011–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2011s-15&r=cul |
| By: | Cross, Robin; Plantinga, Andrew J.; Stavins, Robert N. |
| Abstract: | We examine the value of terroir, which refers to the special characteristics of a place that impart unique qualities to the wine produced. We do this by conducting a hedonic analysis of vineyard sales in the Willamette Valley of Oregon to ascertain whether site attributes, such as slope, aspect, elevation, and soil types, or designated appellations are more important determinants of price. We find that prices are strongly determined by sub-AVA appellation designations, but not by specific site attributes. These results indicate that the concept of terroir matters economically, although the reality of terroir –- as proxied for by locational attributes –- is not significant. |
| Keywords: | swine, vineyard, hedonic price analysis |
| JEL: | C2 Q11 |
| Date: | 2011–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-11-06&r=cul |
| By: | BELLEFLAMME, Paul (Université catholique de Louvain, CORE and Louvain School of Management, B-1348 Louvain-la-Neuve, Belgium); PEITZ, Martin (Department of Economics, University of Mannheim, D-68131 Mannheim, Germany) |
| Abstract: | This article reviews recent theoretical contributions on digital piracy. It starts by elaborating on the reasons for intellectual property protection, by reporting a few facts about copyright protection, and by examining reasons to become a digital pirate. Next, it provides an exploration of the consequences of digital piracy, using a base model and several extensions (with consumer sampling, network effects, and indirect appropriation). A closer look at market-structure implications of end-user piracy is then taken. After a brief review of commercial piracy, additional legal and private responses to end-user piracy are considered. Finally, a quick look at emerging new business models is taken. |
| Keywords: | information good, piracy, copyright, IP protection, internet, peer-to-peer, software, music |
| JEL: | L11 L82 L86 |
| Date: | 2010–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2010060&r=cul |
| By: | Zakharenko, Roman |
| Abstract: | In this paper, I merge two theories -- theory of "passionate individuals" by Gumilev(1989) and Memetics by Dawkins(1976) - to develop a formal growth theory that states that societies become more developed when their members have more intrinsic motivation to solve problems of social importance (i.e. make "cultural contributions"). Individuals derive utility from genetic fitness (i.e. the number of surviving children) as well as from cultural fitness, defined as the amount of appreciation ("honor") of one's cultural contribution by future generations. To make a cultural contribution, one must study/honor cultural contributions of the past, which leads to multiple steady states. In the survival steady state, individuals expect that no one in the future will be interested in their cultural contribution, which makes them allocate all energy onto maximization of genetic fitness and care little about cultural contributions of the past. In the passionate steady state, individuals expect high appreciation of their cultural contribution and thus spend a lot of energy onto making such a contribution, which makes them highly appreciate cultural contributions of the past. Empirical implications of theory are also discussed. |
| Keywords: | passionate individuals; human values; poverty traps; memetics; economic growth |
| JEL: | O11 O49 Z13 |
| Date: | 2011–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:28552&r=cul |