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on Cultural Economics |
| By: | Amedeo Piolatto (IEB, University of Barcelona); Florian Schuett (TILEC, CentER, Tilburg University) |
| Abstract: | Anecdotal evidence and recent empirical work suggest that music piracy has differential effects on artists depending on their popularity. Existing theoretical literature cannot explain such differential effects since it is exclusively concerned with single-firm models. We present a model with two types of artists who differ in their popularity. We assume that the costs of illegal downloads increase with the scarcity of a recording, and that scarcity is negatively related to the artist’s popularity. Moreover, we allow for a second source of revenues for artists apart from CD sales. These alternative revenues depend on an artist's recognition as measured by the number of consumers who obtain his recording either by purchasing the original or downloading a copy. Our findings for the more popular artist generalize a result found by Gayer and Shy (2006) who show that piracy is beneficial to the artist when alternative revenues are important. In our model, however, this does not carry over to the less popular artist, who is often harmed by piracy even when alternative revenues are important. We conclude that piracy tends to reduce musical variety. |
| Keywords: | Piracy, file sharing, heterogeneous artists |
| JEL: | L82 K42 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2011/2/doc2011-5&r=cul |
| By: | Gil, Ricard (IESE Business School); Riera-Crichton, Daniel (Bates College) |
| Abstract: | In this paper, we empirically test the relation between price discrimination and product market competition in a two-sided market setting using a new data set of Spanish local TV stations that provides information on subscription and advertising prices per station for 1996, 1999 and 2002. During these years, changes in regulation in this sector had a deep impact on the degree of local market competition. We use differences in market structure across markets and across years to study the relation between competition and price discrimination in this setting. Our findings suggest that stations in more competitive markets are less likely to use price discrimination. We also find evidence that stations price discriminating in a market are also more likely to price discriminate on the other market. Finally, cable subscription fees and advertising prices are higher in more competitive markets which suggests that tougher competition may increase market segmentation through station differentiation, driving stations to charge higher uniform prices to more loyal customers. This may indicate that less price discrimination may be associated with lower consumer surplus in all markets. |
| Keywords: | Price discrimination; market competition; Local TV Industry; product; subscription; advertising; |
| Date: | 2011–01–13 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:iesewp:d-0894&r=cul |
| By: | Gil, Ricard (IESE Business School) |
| Abstract: | This paper empirically examines the relation between product market competition and vertical integration in the Spanish local TV industry. For this reason, I use a data set of Spanish local TV stations that provides station level information on vertical integration and product market competition, as well as other station and market characteristics, for the years 1996, 1999 and 2002. During this period, changes in regulation in this industry had a strong impact on the level of market competition faced by local TV stations. I use differences in market structure across markets and years to empirically study the relation between vertical integration and competition. My results show that there exists a negative relation between vertical integration and market competition. I also find that despite the fact that private stations are less likely to integrate content production, they are more likely to do so the higher the number of competing stations in their coverage area. Private stations do so because by increasing the percentage of content produced in-house they differentiate themselves from competition and therefore soften competition and maximize profits. |
| Keywords: | market competition; local TV Industry; product; vertical integration; |
| Date: | 2011–01–11 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:iesewp:d-0893&r=cul |
| By: | Johansson, Börje (Jönköping International Business School (JIBS)); Klaesson, Johan (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | This chapter intends to demonstrate that the Stockholm region is the key centre for knowledge development, innovations and intellectual creativity in Sweden. The region is an attractor for individuals with ambitions and talents in political, economic and cultural life. At the same time novel ideas and solutions diffuse from the Stockholm region to other regions of the country. A major effort in the study is to describe occupations with regard to (i) the skills of a job and (ii) the tasks associated with a job. Moreover, the knowledge intensity of an ur-ban region can be related to the absorption capacity of firms in the region, implying that firms can make use of all sorts of novelties in the world economy as stimuli for own imi-tations and innovations. Compared to other parts of Sweden, the Stockholm region has both a richer inflow of creative ideas and a larger absorptive capacity. This allows the Stockholm region to function as a source of innovation and business renewal for the rest of the country as novelties diffuse through the regional hierarchy. |
| Keywords: | Sweden; Stockholm; Creativity; Knowledge; Innovation; Diversity |
| JEL: | J24 O30 R11 R12 |
| Date: | 2011–02–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0234&r=cul |
| By: | Neil MacCallum; Thierry Baert; Pierfelice Rosato; Stefano Barbieri |
| Abstract: | This document intends to provide a discussion of issues related to tourism and local development in Apulia region (Italy), an assessment of the strengths and weaknesses of current practices in related policy implementation, and recommendations and guidance on how the Apulia Government can establish and implement a successful sustainable tourism and local development strategy in the Region. |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2011/2-en&r=cul |