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on Cultural Economics |
| By: | Jin-Hyuk Kim (Department of Economics, University of Colorado at Boulder); Tin Cheuk Leung (Department of Economics, Chinese University of Hong Kong) |
| Abstract: | The demand for electronic books (e-books) and the e-book readers are complementary. On the one hand, the emergence of e-book readers such as Amazon's Kindle has triggered the recent growth of the e-book market. On the other hand, several issues in the e-book market can affect the future of the e-book reader market. Considering this complementarity, this paper quantifies the impact of digital rights management (DRM) and discounted e-book pricing on the demand for e-book readers. We collect conjoint survey data to estimate a random coefficient demand model using a hierarchical Bayesian method. Our counterfactual experiments suggest two things. First, Kindle's and Nook's market shares would increase by dropping DRM. Consumer welfare would increase seven percent if all e-book readers dropped DRM. Second, an increase in e-book prices would increase iPad's market share at the expense of that of Kindle and Nook. Consumer welfare would decrease 6 to 10 percent if Kindle's and Nook's e-book prices went up by 50 percent. |
| Keywords: | electronic book, demand estimation, DRM, agency model |
| JEL: | L15 L63 O30 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:net:wpaper:1303&r=cul |
| By: | Megan MacGarvie; Petra Moser |
| Abstract: | Proponents of stronger copyright terms have argued that stronger copyright terms encourage creativity by increasing the profitability of authorship. Empirical evidence, however, is scarce, because data on the profitability of authorship is typically not available to the public. Moreover at current copyright lengths of 70 years after the author’s death, further extensions may not have any effects on the profitability of authorship. To investigate effects of copyright at lower pre-existing levels of protection, this chapter introduces a new data set of publishers’ payments to authors of British fiction between 1800 and 1830. These data indicate that payments to authors nearly doubled following an increase in the length of copyright in 1814. These findings suggest that – starting from low pre-existing levels of protection – policies that strengthen copyright terms may, in fact, increase the profitability of authorship. |
| JEL: | K11 N83 O31 O34 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19521&r=cul |
| By: | Michael R. Baye; Babur De los Santos; Matthijs R. Wildenbeest |
| Abstract: | This paper provides a data-driven overview of the different online platforms that consumers use to search for books and booksellers, and documents how the use of these platforms is shifting over time. Our data suggest that, as a result of digitization, consumers are increasingly conducting searches for books at retailer sites and closed systems (e.g., the Kindle and Nook) rather than at general search engines (e.g., Google or Bing). We also highlight a number of challenges that will make it difficult for researchers to accurately measure internet-based search behavior in the years to come. Finally, we highlight a number of open agenda items related to the pricing of books and other digital media, as well as consumer search behavior. |
| JEL: | D83 L86 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19519&r=cul |
| By: | Adrian Hille; Jürgen Schupp |
| Abstract: | Despite numerous studies on skill development,we know little about the causal effects of music training on cognitive and non-cognitive skills. This study examines how long-term music training during childhood and youth affects the development of cognitive skills, school grades, personality, time use and ambition using representative data from the German Socio-Economic Panel (SOEP). Our findings suggest that adolescents with music training have better cognitive skills and school grades and are more conscientious, open and ambitious. These effects do not differ by socio-economic status. Music improves cognitive and non-cognitive skills more than twice as much as sports, theater or dance. In order to address the non-random selection into music training, we take into account detailed information on parents, which may determine both the decision to pursue music lessons and educational outcomes: socio-economic background, personality, involvement with the child’s school, and taste for the arts. In addition, we control for the predicted probability to give up music before age 17 as well as the adolescent’s secondary school type. We provide evidence that our results are robust to both reverse causality and the existence of partly treated individuals in the control group. |
| Keywords: | Music, cognitive and non-cognitive skills, educational achievement, SOEP |
| JEL: | I21 J24 Z11 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp591&r=cul |
| By: | Neil Lee |
| Abstract: | Growing cultural diversity is seen as important for innovation. Research has focused on two potential mechanisms: a firm effect, with diversity at the firm level improving knowledge sourcing or ideas generation, and a city effect, where diverse cities helping firms innovate. This paper uses a dataset of over 2,000 UK SMEs to test between these two. Controlling for firm characteristics, city characteristics and firm and city diversity, there is strong evidence for the firm effect. Firms with a greater share of migrant owners or partners are more likely to introduce new products and processes. This effect has diminishing returns, suggesting that it is a 'diversity' effect rather than simply the benefits of migrant run firms. However, there is no relationship between the share of foreign workers in a local labour market and firm level innovation, nor do migrant-run firms in diverse cities appear particularly innovative. But urban context does matter and firms in London with more migrant owners and partners are more innovative than others. |
| Keywords: | Cultural diversity, innovation, cities, SMEs, migration |
| JEL: | J61 L21 M13 R23 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0144&r=cul |
| By: | Ross Finnie (Graduate School of Public and International Affairs, University of Ottawa, Ottawa, ON) |
| Abstract: | This paper first discusses the theoretical approaches regarding the choice of participating in post-secondary (or “higher”) education, starting with a presentation of the standard neoclassical economics approach, and then adding concepts taken from the emerging behavioural economics literature to take into account “cultural” factors that affect access. The paper then presents the results of an empirical analysis based on a very rich Canadian dataset, the Youth in Transition Survey, which follows youth from age 15 through to age 25 and includes remarkably detailed information on family and other background factors as well as schooling experiences, which provides evidence which points to the importance of cultural influences on PSE choices. Policy implications are then discussed. |
| Keywords: | education; post-secondary education; higher education; culture; behavioural economics; students; Canada; youth; university; college; parental education; |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ott:wpaper:1303e&r=cul |
| By: | Adena, Maja; Enikolopov, Ruben; Petrova, Maria; Santarosa, Veronica; Zhuravskaya, Ekaterina |
| Abstract: | How far can the media protect or undermine democratic institutions in unconsolidated democracies, and how persuasive can they be in ensuring public support for dictator's policies? We study this question in the context of Germany between 1929 and 1939. Using geographical and temporal variation in radio availability, we show that radio had a significant negative effect on the Nazi electoral support between 1929 and 1932, when political news were slanted against Nazi party. This effect was reversed in just 5 weeks following Hitler's appointment as chancellor and the transfer of control of the radio to the Nazis. Pro-Nazi radio propaganda caused higher vote for the Nazis in March 1933 election. After full consolidation of power, radio propaganda helped the Nazis to enroll new party members and encouraged denunciations of Jews and other open expressions of anti-Semitism. The effect of Nazi propaganda was not uniform. Depending on listeners' priors about the message, propaganda could be very effective or could backfire. Nazi radio was most effective in places where anti- Semitism was historically high and had a negative effect on the support for anti-Semitic policies in places with historically low anti-Semitism. -- Inwieweit können die Medien zum Schutz oder zur Untergrabung ungefestigter Demokratien beitragen? Und inwieweit können sie Unterstützung für die Politik des Diktators generieren? Wir analysieren diese Fragen im Kontext der Weimarer Republik ab 1929 und des NS-Regimes bis 1939. Die voranschreitende technische Entwicklung dieser Zeit erlaubt uns die geografische und zeitliche Veränderung der Radioempfangsqualität für Identifikationszwecke zu nutzen. In der Zeit zwischen 1929 und 1932, in der das Rundfunkprogramm pro-demokratisch und gegen die NSDAP ausgerichtet war, hatte das Radio einen signifikant negativen Einfluss auf die Wahlergebnisse der NSDAP. Dieser Effekt wurde bereits 5 Wochen nach der Ernennung Hitlers zum Kanzler und der Kontrollübernahme über das Rundfunkprogramm umgekehrt. Die intensive NS-Propaganda im Radio während dieser Zeit bewirkte einen Stimmenzuwachs für die NSDAP bei den Reichstagswahlen in März 1933. Nachdem die Nazis ihre Macht konsolidiert hatten, trug die Rundfunkpropaganda messbar zu vermehrten Parteieintritten und zur Zustimmung der Bevölkerung bei der Denunziation von Juden und zu anderen Formen des offenen Antisemitismus bei. Dennoch war der Einfluss der NS-Propaganda nicht uniform. Je nach Voreingenommenheit der Zuhörer konnte die Propaganda sehr effektiv oder aber kontraproduktiv sein. Das NS-Radio war am effektivsten in Orten mit historisch hohem Antisemitismus und hatte einen negativen Effekt auf die Unterstützung der antisemitischen Politik in Orten mit historisch niedrigem Antisemitismus. |
| Keywords: | anti-semitism,dictatorship,media,Nazis,propaganda,unconsolidated democracy |
| JEL: | D72 L82 N74 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wzbeoc:spii2013310&r=cul |