nep-cul New Economics Papers
on Cultural Economics
Issue of 2011‒12‒19
two papers chosen by
Roberto Zanola
University Amedeo Avogadro

  1. Media market concentration, advertising levels, and ad prices. By Anderson, Simon P.; Foros, Øystein; Kind, Hans Jarle; Peitz, Martin
  2. Making sense of institutional change in China: The cultural dimension of economic growth and modernization By Herrmann-Pillath, Carsten

  1. By: Anderson, Simon P. (University of Virginia); Foros, Øystein (Department of Finance and Management Science); Kind, Hans Jarle (Dept. of Economics, Norwegian School of Economics and Business Administration); Peitz, Martin (University of Mannheim)
    Abstract: Standard media economics models imply that increased platform competition decreases ad levels and that mergers reduce per-viewer ad prices. The empirical evidence, however, is mixed. We attribute the theoretical predictions to the combined assumptions that there is no advertising congestion and that viewers single-home. Allowing for crowding in viewer attention spans for ads may reverse standard results, as does allowing viewers to multi-home.
    Keywords: Media economics; pricing ads; advertising clutter; information congestion; mergers; entry.
    JEL: D11 D43 L13
    Date: 2011–12–15
  2. By: Herrmann-Pillath, Carsten
    Abstract: Building on a new model of institutions proposed by Aoki and the systemic approach to economic civilizations outlined by Kuran, this paper attempts an analysis of the cultural foundations of recent Chinese economic development. I argue that the cultural impact needs to be conceived as a creative process that involves linguistic entities and other public social items in order to provide integrative meaning to economic interactions and identities to different agents involved. I focus on three phenomena that stand at the center of economic culture in China, networks, localism and modernism. I eschew the standard dualism of individualism vs. collectivism in favour of a more detailed view on the self in social relationships. The Chinese pattern of social relations, guanxi, is also a constituent of localism, i.e. a peculiar arrangement and resulting dynamics of central-local interactions in governing the economy. Localism is balanced by culturalist controls of the center, which in contemporary China builds on the worldview of modernism. Thus, economic modernization is a cultural phenomenon on its own sake. I summarize these interactions in a process analysis based on Aoki's framework. --
    Keywords: Aoki,culture and the economy,emics/etics,guanxi,relational collectivism,central/local government relations,culturalism,population quality,consumerism
    JEL: B52 P2 Z1
    Date: 2011

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