nep-cul New Economics Papers
on Cultural Economics
Issue of 2011‒11‒07
six papers chosen by
Roberto Zanola
University Amedeo Avogadro

  1. Econometric analysis of volatile art markets By Fabian Y. R. P. Bocart; Christian M. Hafner
  2. The creative industrial park : formation path and evolution mechanism By Yang, Yong-Zhong; Huang, Shu-Yi; Lin, Ming-Hua
  3. Indirect Copyright Infringement Liability for ISPs and The Economics of Contracts under Asymmetric Information By Richard Watt
  4. Aggregators and the News Industry: Charging for Access to Content By James Rutt
  5. Stories on corruption. How media and prosecutors influence elections. By Pablo Enrique Torija JimŽnez
  6. Ad Revenue and Content Commercialization: Evidence from Blogs By Monic Sun; Feng Zhu

  1. By: Fabian Y. R. P. Bocart; Christian M. Hafner
    Abstract: A new heteroskedastic hedonic regression model is suggested which takes into account time-varying volatility and is applied to a blue chips art market. A nonparametric local likelihood estimator is proposed, and this is more precise than the often used dummy variables method. The empirical analysis reveals that errors are considerably non-Gaussian, and that a student distribution with time-varying scale and degrees of freedom does well in explaining deviations of prices from their expectation. The art price index is a smooth function of time and has a variability that is comparable to the volatility of stock indices.
    Keywords: Volatility, art markets, hedonic regression, semiparametric estimation
    JEL: C14 C43 Z11
    Date: 2011–10
  2. By: Yang, Yong-Zhong; Huang, Shu-Yi; Lin, Ming-Hua
    Abstract: This paper has built a three-stage assumption of creative industrial park on the base of evolutionary economics, which are the gather of units, the construction of interface and the development of network. The gather of units is a reflection of resource search, the construction of interface is a need of identity, and the development of network is a result of multi-dimensional expansion.In the three-stage evolution, the creative industrial park increases constantly their evolution level from the simple geographic gathered to the division and cooperation of labor, until the formation of novel systems. Then this paper analyzes the 798 creative industrial park using the three-stage assumption. This paper finds the main problem of 798’s self-destructing after the low level development of the third stage is the exclusion of the commercial prosperity to the art production. Accordingly,the paper puts forword four modes of promoting the integration between art and commerce. At last, this paper argues the different characteristics of the creative industrial park from other industrial parks. On the angle of formation path, the essence of creative industries is integration of culture and economy, technology. On the angle of evolution mechanism, it reflects novel characteristic of unit, identity characteristic of interface, and co-creation characteristic of network.
    Keywords: creative industrial park; formation path; evolution mechanism; integration of culture;economy;and technology
    JEL: B52 L8
    Date: 2011–10–10
  3. By: Richard Watt
    Abstract: Under current copyright law, Internet Service Providers (ISPs) can be found liable for the traffic on the websites that they host. While the ISPs themselves are not undertaking acts that infringe copyright, indirect liability asserts that they either contribute to, or encourage in some way, infringing activities, and thus they are liable to claims of indirect involvement by the affected copyright holders. The present paper explores indirect liability in a standard principal-agent setting, where both moral hazard (the act of monitoring) and adverse selection (differential costs of monitoring over ISPs) are present. The model considers the kinds of contracts that could be signed between the copyright holders (acting through a collective) and the ISPs (acting individually). The self-selecting, incentive compatible equilibrium is found for the feasible scenarios that may present themselves.
    Date: 2011–10
  4. By: James Rutt (Faculty of Economics, University of Cambridge)
    Abstract: The Internet has drastically altered the nature of competition in the news industry. This article develops a model of price and quality competition between firms in the online news industry. In equilibrium, firms randomise in their pricing strategies and this generates the cross- sectional mixture of advertiser and subscription funded models we observe. The model also plausibly explains why pricing strategies differ across content areas. Finally, an important part of my explanation is that aggregators, such as Google and, allow consumers to search amongst articles and direct consumers towards high quality articles. The model's results have implications for the ongoing public debate about the effects of aggregators on the news industry; although aggregators may harm firms, consumers may benefit.
    Keywords: Internet, Newspapers, Aggregators, Paywalls
    JEL: L11 L13 L82
    Date: 2011–09
  5. By: Pablo Enrique Torija JimŽnez (Università di Padova)
    Abstract: I analyse whether Attorney Generals try to influence elections by adjusting the tempo of their investigations to the electoral calendar, and whether mass media have a partisan bias and hide corruption activities of their preferred parties. For doing so, I have coded the number of articles containing the word ÒcorruptionÓ of the two main Spanish newspapers, finding significant evidence of both behaviors.
    Keywords: Mass media, prosecutor, political economy, corruption, newspaper, Spain.
    JEL: H11 P16 L82
    Date: 2011–10
  6. By: Monic Sun (Graduate School of Business, Stanford University); Feng Zhu (Marshall School of Business, University of Southern California)
    Abstract: Many scholars argue that content providers, when incentivized by ad revenue, are more likely to tailor their content to attract “eyeballs,” and as a result, popular content may be excessively supplied. We empirically test this prediction by taking advantage of the launch of an ad-revenue-sharing program initiated by a major Chinese portal site in September 2007. Participating bloggers allow the site to run ads on their blogs and receive 50% of the revenue generated by these ads. After analyzing 4.4 million blog posts, we find that, relative to nonparticipants, popular content increases by about 13 percentage points on participants¡¯ blogs after the program takes effect. This increase can be partially attributed to topics shifting toward three domains: the stock market, salacious content, and celebrities. We also find evidence that, relative to nonparticipants, participants¡¯ content quality increases after the program takes effect.
    Keywords: Ad-Sponsored Business Model, Media Content, Blog, Revenue-Sharing
    JEL: L82 L86
    Date: 2011–10

This nep-cul issue is ©2011 by Roberto Zanola. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.