nep-cul New Economics Papers
on Cultural Economics
Issue of 2014‒03‒30
twelve papers chosen by
Roberto Zanola
Universita' del Piemonte Orientale Amedeo Avogadro

  1. Constructing value for culture: The evolution of local cultural industriesÕ policies and governance in North-East Italy By Lorenzo Mizzau
  2. A spatial econometric approach to spillover effects between protected areas and deforestation in the Brazilian Amazon By Ariane Manuela AMIN; Johanna Choumert; Pascale Combes Motel; Jean-Louis Combes; Eric Nazindigouba KERE; Jean Galbert ONGONO OLINGA; Sonia Schwartz
  3. Disassembly and reassembly on digital technology and creative industries By Vincent Mangematin; Jonathan Sapsed; Elke Schüßler
  4. Wine as a cultural product: Symbolic capital and price formation in the wine field By Beckert, Jens; Rössel, Jörg; Schenk, Patrick
  5. Media competition and electoral politics By Amedeo Piolatto; Florian Schuett
  6. Cross Cultural Differences in Decisions from Experience: Evidence from Denmark, Israel and Taiwain By Sibilla Di Guida; Ido Erev; Davide Marchiori
  7. We all do it, but are we willing to admit? Incentivizing digital pirates' confessions By Anna Kukla-Gryz; Michał Krawczyk; Konrad Siwiński; Joanna Tyrowicz
  8. Is Participation in Tourism Market an Opportunity for Everyone? Some Evidence from Italy By Cristina Bernini; Maria Francesca Cracolici
  9. Estimating the economic benefits of a Wetland restoration program in New Zealand: A contingent valuation approach By Ndebele, Tom; Forgie, Vicky; Vu, Huong
  10. Sports and Regional Growth in Sweden - Is a successful professional sports team good for regional economic growth? By Värja, Emelie
  11. Climate Amenities and Adaptation to Climate Change: A Hedonic-Travel Cost Approach for Europe By Salvador Barrios; J. Nicolás Ibañez Rivas
  12. Estimating Platform Market Power in Two-Sided Markets with an Application to Magazine Advertising By Minjae Song

  1. By: Lorenzo Mizzau (Dept. of Management, Università Ca' Foscari Venice)
    Abstract: The purpose of this paper is to delve into the processes whereby cultural industries are interpreted by cultural, political and administrative actors, generating diverse and often unpredictable cultural, economic and social effects. By drawing evidence from a field project on the movie and audiovisual sector in North-East Italy, I explore the actual practices and micro-dynamics of local audiovisual policies formation, examining how they emerge from a continuous and complex interaction between (purposive) cultural actors and (interactive) policymakers and institutions through time. The results from a comparative case study analysis show how different patterns of interaction lead to different outcomes in terms of the effective functioning of the local cultural industry sector, and how this relationship Ð albeit a complex, multifaceted one Ð is mediated by the internal networking capability and proactivity of cultural actors. In the two patterns found, in fact, local actors were differently capable to influence institutions and by consequence to act upon the local audiovisual and movie sectors.
    Keywords: cultural industries, cultural policy formation, film and audiovisual industry, governance
    JEL: L82 M13 R38 Z10
    Date: 2014–03
  2. By: Ariane Manuela AMIN (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Johanna Choumert (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Pascale Combes Motel (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Jean-Louis Combes (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Eric Nazindigouba KERE (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Jean Galbert ONGONO OLINGA (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Sonia Schwartz (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I)
    Abstract: Protected areas are increasingly used as a tool to fight against deforestation. This paper presents new evidence on the spillover effects that occur in the decision to deforest and the creation of protected areas in local administrative entities in Brazilian Legal Amazon over the 2001-2011 period. We also highlight the interdependence between these two decisions. We proceed in two steps. First, we assumed that protected areas are created to stop the negative effects of deforestation on biodiversity. In order to control for the non-random location of protected areas, biodiversity indicators are used as excluded instruments. This model is estimated using a spatial model with instrumental variables. Second, a simultaneous system of spatially interrelated cross sectional equations is used to take into account the interdependence between the decision to deforest and the creation of protected areas. Our results show (i) that deforestation activities of neighboring municipalities are complements and that (ii) there is evidence of leakage in the sense that protected areas may shift deforestation to neighboring municipalities. The net effect of protected areas on deforestation remains however negative; it is moreover stable across two sub-periods. Our results confirm the important role of protected areas to curb deforestation and thereby biodiversity erosion. Moreover, they show that strategic interactions deserve attention in the effectiveness of conservation policies.
    Keywords: Protected areas; deforestation; spatial interactions; simultaneous equations; Brazil; Amazon
    Date: 2014–03–18
  3. By: Vincent Mangematin (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)); Jonathan Sapsed (University of Brighton - University of Brighton); Elke Schüßler (Freie University Berlin - Freie University Berlin)
    Abstract: This paper analyses the dynamics of disassembly and reassembly unfolding in selected creative industries through the advent of digital technology. It argues that a full understanding of the much-observed organizational or sectoral lock-in effects on the one hand, and the possibilities for transformation and innovation on the other is only gained by analyzing jointly how institutional logics, business models and creative processes are affected by digital technology and how they interrelate in producing stability or change. These three dimensions provide a framework for reviewing the findings of the papers comprised in the Special Issue and for integrating their insights towards a research agenda. This introduction starts with a reflection on creative industries classification systems and related possibilities for generalization and discusses how digital technology acts as a driver for disassembly and reassembly. It concludes by highlighting three avenues for further research.
    Keywords: Digital technology; creative industries; innovation; business models; institutional change; institutional logics; creative processes
    Date: 2014
  4. By: Beckert, Jens; Rössel, Jörg; Schenk, Patrick
    Abstract: Understanding the valuation of goods in markets has become one of the key topics in economic sociology in recent years. Especially in markets for goods that are valued for their aesthetic qualities, the ascription of value appears to be a complex social process because product quality is highly uncertain. The wine market is an extraordinary example because most consumers and even experts are not able to differentiate between wines based on objective sensory characteristics and cannot rank wines in blind tastings according to their price. Our premise is that assessed quality differences cannot be explained by the sensual qualities of the wine. Instead, we explain variations in valuation by social processes in which quality is constructed and contested. To do so we make use of Bourdieu's field theoretical perspective, which is strongly supported in our empirical analysis of the German wine field. It shows that his model of the structure of fields has considerable power in explaining price differentiation between wineries and that the orientation of consumers towards different segments of the field is based on class hierarchy. -- Die Untersuchung der Grundlagen des Werts von Gütern ist gegenwärtig eines der zentralen Themen der Wirtschaftssoziologie. Besonders in Märkten für Güter, deren Nutzen vornehmlich in ästhetischen Qualitäten besteht, ist die Konstruktion von Wert ein komplexer sozialer Prozess, da Produktqualität hochgradig ungewiss ist. Der Weinmarkt ist hierfür ein besonders gutes Beispiel. Die meisten Konsumenten und sogar Experten sind nicht in der Lage, Wein an seinen sensorischen Qualitäten zu unterscheiden, und können einen Wein in Blindverkostungen auch nicht in eine Preisskala einordnen. Unser Ausgangspunkt ist die Annahme, dass wahrgenommene Qualitätsunterschiede nicht durch die sensorischen Qualitäten des Weins erklärt werden können. Stattdessen erklären wir Wertunterschiede durch soziale Prozesse, in denen Qualität konstruiert und kontrovers diskutiert wird. Dafür nutzen wir Bourdieus Feldtheorie, die in der empirischen Analyse des deutschen Weinfeldes starke Unterstützung findet. Es zeigt sich, dass sein Modell der Struktur des Weinfeldes erhebliche Erklärungskraft bei der Erklärung von Preisunterschieden zwischen Weingütern hat und dass die Orientierung der Konsumenten auf je unterschiedliche Segmente des Feldes in Klassenhierarchien begründet liegt.
    Date: 2014
  5. By: Amedeo Piolatto (Universitat de Barcelona & IEB); Florian Schuett (Tilburg University)
    Abstract: We build a framework linking competition in the media market to political participation. Media outlets report on the ability of candidates running for office and compete for audience through their choice of slant. Citizens consume news only if the expected utility of being informed about candidates' ability is sufficiently large for their group collectively. Our results can reconcile seemingly contradictory empirical evidence showing that entry in the media market can either increase or decrease turnout. While information pushes up independent turnout, partisans adjust their turnout to the ability of their preferred candidate, and on average they vote less when informed.
    Keywords: Demand for news, electoral turnout, group-rule utilitarianism, media bias
    JEL: D72 L82
    Date: 2014
  6. By: Sibilla Di Guida; Ido Erev; Davide Marchiori
    Abstract: This paper examines the effects of different cultural backgrounds on decisions from experience. In Experiment 1, participants from Denmark, Israel, and Taiwan faced each of six binary choice problems for 200 trials. The participants did not receive prior description of the payoff distributions, but obtained complete feedback after each choice. Comparison of choice behavior across cultural groups reveals similar overall choice rates, and similar indications of underweighting of rare events and of the payoff variability effect. In addition, subjects from Taiwan exhibited a stronger tendency to chase recent outcomes. That is, subjects from East Asia behaved “as if” they expected less change in the environment than subjects from West Asia and West Europe. Experiment 2 shows that an increase in the complexity of the choice tasks (i.e. adding slight variability to the safe option, and increasing the number of replicas for each option) does not break the similarity of choice rates across cultural groups, but reverses the observed chasing pattern: In Experiment 2, Israeli participants tended to chase recent outcomes more than did the Taiwanese. These results can be summarized with the assumption that the tendency to rely of small samples of past experiences (a sufficient condition for underweighting of rare events and the payoff variability effect) is robust to cultural differences, but the exact sampling process is culture- and framing-specific. An increase in the number of possible outcomes increases the probability of sampling the most recent trial in the West, but not in the East. Thus, behavior in the East appears less sensitive to task complexity.
    Keywords: cross cultural decision making; rare events; decisions from experience; clicking paradigm; recency effect
    Date: 2014–03
  7. By: Anna Kukla-Gryz (Faculty of Economic Sciences, University of Warsaw); Michał Krawczyk (Faculty of Economic Sciences, University of Warsaw); Konrad Siwiński (Faculty of Economic Sciences, University of Warsaw); Joanna Tyrowicz (Faculty of Economic Sciences, University of Warsaw)
    Abstract: In this study we try to assess the prevalence of illicit downloading in the market of audio books and the willingness to admit to such practices. We compare the Bayesian Truth Serum (Prelec, 2004) treatment in which truthful responses and precise estimates are rewarded to the control treatment with a flat participation fee. We find a sizable treatment effect - incentivized “pirates” admit approximately 60% more often than the non-incentivized ones.
    Keywords: illegal download, digital piracy, Bayesian Truth Serum, wages
    JEL: A13 C93 D12
    Date: 2014
  8. By: Cristina Bernini (Department of Statistical Sciences, University of Bologna, Italy); Maria Francesca Cracolici (Department of Economics, Business and Statistics, Italy)
    Abstract: Exploring the main determinants of tourism participation at national and international level, the paper investigates if there are differences in tourism consumption behavior among Italian families which reflect disparities in their standard of living. To achieve this a Heckman model has been used on a huge sample of Italian households over the period 1997-2007. Results show that participation in the tourism market is strongly affected by the personal characteristics of individuals and that tourism consumption is an income sensitive good. The analysis reveals that tourism is generally a luxury good reflecting the disparities in the standard of living among Italian families. We have found that participation in the tourism market is affected not only by economic constraints, but also by cultural and territorial factors.
    Keywords: Tourism Consumption, Income Elasticity, Household Characteristics, Domestic and International Travels, Standard of Living
    JEL: D10 C23 C24 L83
    Date: 2014–02
  9. By: Ndebele, Tom; Forgie, Vicky; Vu, Huong
    Abstract: Decades of failure to evaluate the ecosystem services provided by Pekapeka Swamp in New Zealand led to decisions that allowed prolonged degradation of the swamp, resulting in the loss of potential economic value. In 1998 a long term management plan was adopted to restore and preserve the swamp without evaluating the potential welfare benefits of the plan. This study contributes to literature by providing the first estimation of total economic value (TEV) of the restoration and preservation of Pekapeka Swamp. Using the contingent valuation method, this study shows that estimated TEV ranges from NZ$1.64 million to NZ$ 3.78 million per year and the net present value ranges between NZ$5.05 million and NZ$16.39 million. These results imply that the restoration and preservation of Pekapeka Swamp is an important investment.
    Keywords: Contingent valuation method; wetland; dichotomous choice; willingness to pay; New Zealand
    JEL: Q5 Q57
    Date: 2014–03–24
  10. By: Värja, Emelie (Örebro University School of Business)
    Abstract: This study investigates whether net inbound migration and per capita income growth of a municipality is affected when a local sports team enters or exits the premium national leagues in ice hockey or soccer in Sweden. Local governments frequently support a local professional team through direct subsidies; beneficial funding of arenas, etc., which often is motivated by alleged, positive externalities through effects on the attractiveness of the municipality as a leisure-travel destination, or place for living or doing business, which ultimately is supposed to enhance the tax base and the tax revenues of the local government. Previous literature on such effects is based on simple models estimated on a selected sample of cities and without consideration of spatial interdependencies between local areas. We carry out a simultaneous estimation of spatial paneldata models of income per capita growth and net migration rates using annual data from all Swedish municipalities from 1995-2011 (except for four municipalit that have changed borders). With this richer modeling framework we still find no evidence of a positive relationship from performance of a local team on any of these two variables.
    Keywords: sports; growth; spatial econometrics; regional growth
    JEL: H71 J61 L83
    Date: 2014–03–21
  11. By: Salvador Barrios (Institute for Prospective Technological Studies, Joint Research Centre, European Commission); J. Nicolás Ibañez Rivas (Institute for Prospective Technological Studies, Joint Research Centre, European Commission)
    Abstract: We investigate the impact of climatic change on welfare in European regions using a hedonic travel-cost framework and focusing on tourism demand. Our hedonic price estimations combine detailed hotel price information with tourism-specific travel cost estimations for each pair of EU region. This approach allows us to estimate different valuations of climate amenities depending on time duration of holidays. In our analysis of adaptation to climate change we therefore consider holiday duration as variable of adaptation. Our findings suggest that the rise in temperature in preferred destination choices during the summer season (i.e. southern EU) is likely to yield significant welfare losses. As a result European tourists are more likely to spend shorter (and more frequent) holidays and to diversify their destination choices in order to mitigate these losses.
    Keywords: Climate Change, Hedonic Prices, Travel Cost, Tourism, Europe
    JEL: L8 Q5
    Date: 2014–02
  12. By: Minjae Song (University of Rochester)
    Abstract: In this paper I estimate platform markups in two-sided markets using structural models of platform demand. My models and estimation procedure are applicable to general two-sided market settings where agents on each side care about the presence of agents on the other side and platforms set two membership prices to maximize the sum of profits. Using data on TV magazines in Germany I show that the magazines typically set copy prices below marginal costs and earn profits from selling advertising pages. I also show that mergers are much less anticompetitive than in one-sided markets and could even be welfare enhancing.
    Date: 2013

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