nep-cul New Economics Papers
on Cultural Economics
Issue of 2014‒08‒09
seven papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Anchoring or Loss Aversion? Empirical Evidence from Art Auctions By Mike Moses; Rachel Pownall
  2. The Dynamics of Personal Norms and the Emergence of Cultural Diversity By Vicente Calabuig; Gonzalo Olcina; Fabrizio Panebianco
  3. Cultural Diversity and Economic Policy By Dirk Dohse; Robert Gold
  4. Democratic representation and religion. Differences and convergences between the European Parliament and the US House of Representatives By François Foret
  5. Ideological Polarization and the Media By Mickael Melki; Andrew Pickering
  6. Creative success and network embeddedness: Explaining critical recognition of film directors in Hollywood, 1900-2010 By Lutter, Mark
  7. Surprise me if you can: influence of newspaper endorsements in US Presidential elections By Agustin Casas; Yarine Fawaz; Andre Trindade

  1. By: Mike Moses (Beautiful Asset Advisors, LLC); Rachel Pownall (Maastricht University and Tilberg University)
    Abstract: We find evidence for the behavioral biases of anchoring and loss aversion. We find that anchoring is more important for items that are resold quickly, and we find that the effect of loss aversion increases with the time that a painting is held. The evidence in favor of anchoring and loss aversion with this large dataset validates previous results and adds to the empirical evidence a finding of increasing loss aversion with the length a painting is held. We do not find evidence that investors can take advantage of these behavioral biases.
    Keywords: anchoring, loss aversion, endowment effect, art auctions
    JEL: D03 D44 Z11
    Date: 2014–06
  2. By: Vicente Calabuig (ERICES, Universidad de Valencia); Gonzalo Olcina (ERICES, Universidad de Valencia); Fabrizio Panebianco (Paris School of Economics)
    Abstract: In this paper we study cultural diversity in values or personal norms concerning effort or work ethics, the related and observable diversity in behavior and its economic consequences. Our goal is to investigate the impact on this type of cultural diversity of primitive economic and behavioral parameters of the group such as the distribution of skills in the group population, the sharing rule on total income that determines income distribution and the levels of materialism, conformism and consistency in the group. Agents participate each period in a team production game by choosing their level of costly effort. We analyze the emergence and evolution of a culture in a group in which members are guided by economic incentives and also follow personal norms of behavior. We take materialism, skills and the income distribution rule as given, but personal norms evolve along the life-cycle of the individuals according to two psychological forces: cognitive dissonance or consistency and informational conformity. We characterize the long-run outcomes of the group and study how the levels of diversity, both in personal norms and in behavior and the level of incoherence between both variables are determined by the primitives of the model. We also analyze how these parameters affect group aggregate production and social welfare.
    Keywords: Cultural Diversity, Personal Norms, Consistency, Conformity JEL
    JEL: C72 C69 D03
    Date: 2014–07
  3. By: Dirk Dohse; Robert Gold
    Abstract: This paper discusses policy implications from the empirical results obtained in the preceding tasks and, in particular, from a survey among city representatives and representatives of migrant organizations in 40 European cities. It argues that cultural diversity is a distinct aspect of migration that must be taken into account when designing policies. Moreover, it pleads for integrating migration and innovation policies to better use the economic potentials linked to migration. In order to achieve this goal, local actors should be incorporated into the design and implementation of (future) integration policies to take adequately into account the regional heterogeneity in diversity effects observed.
    Keywords: Regional Development, Urban Development, Cultural Diversity
    JEL: M13 O18 R11
    Date: 2014–07
  4. By: François Foret
    Abstract: It is common to oppose a secular Europe to a religious America. As representatives of cultural diversity and popular sovereignty, Parliaments are the best illustrations of mutual arrangements between politics and religion. Little data is available on religion at the EP, in contrast to the rich scholarship on the Congress. Relying on the first survey of its kind on members of the European Parliament (MEPs), the article analyses what they believe and what they do with these beliefs. The purpose is to understand how religion interacts with representation and political socialization of MEPs within and outside the assembly. The American House of Representatives is used as a reference case study. Overall, there are significant differences between European and American legislators, mainly due to their distinct social, cultural, political and institutional environments. However, several common logics may also be seen at work, suggesting that the EU is not as exceptional as is often thought.
    Keywords: European Parliament
    Date: 2014–05–15
  5. By: Mickael Melki; Andrew Pickering
    Abstract: Greater media presence may facilitate information transmission and consensus, or amplify existing political differences. In the OECD greater media penetration is strongly correlated with reduced ideological polarization in the electorate. Observed increases in media penetration lead observed reductions in measured polarization, suggesting that this relationship is causal
    Keywords: Ideological Polarization, Media
    JEL: D72
    Date: 2014–06
  6. By: Lutter, Mark
    Abstract: This article analyzes how social network structures affect career success in a projectbased labor market. The literature on team success has shown that teams perform well if they integrate both weak and strong ties simultaneously. Applying the literature to careers in the creative industries, the study suggests that creative artists are more likely to receive critical recognition if they build their careers in both familiar project networks and heterogeneous sets of creative conventions. It is argued that familiarity and diversity operate as complementary elements in the development of innovative ideas. While diversity is important to maximize the flow of new ideas, it needs to be embedded within trustworthy and familiar network structures in order to fully develop its creative potential. The suggested mechanism is tested by means of full career data of 55,097 film directors, covering 478,859 directing jobs in 330,142 film productions during the years 1900-2010. It is shown that familiarity and diversity explain a considerable part of a director's critical success. Results from interaction effects show that diversity has greater effects on critical success if it is socially embedded within familiar social structures. The article contributes to the emerging understanding of the role of group processes and network structures in explaining individual career success. -- Dieser Artikel untersucht, wie soziale Netzwerkstrukturen Karriereerfolg auf einem projektbasierten Arbeitsmarkt bestimmen. Auf der Grundlage von Forschung zu Teamerfolg argumentiert der Beitrag, dass Karriereerfolg in Kreativberufen wahrscheinlicher wird, wenn Karrieren sich sowohl in vertrauten als auch in diversen, mit heterogenen Konventionen ausgestatteten Projektnetzwerken bewegen. Vertrautheit und Diversität wirken als komplementäre Elemente in der Entwicklung innovativer Ideen. Zwar fördert das Element der Diversität den optimalen Austausch neuer Ideen, allerdings muss es, damit sich sein kreatives Potenzial vollständig entfalten kann, zugleich in vertrauensvollen Netzwerkstrukturen eingebettet sein. Anhand eines vollständigen Karrieredatensatzes, der Karriereprofile von 55.097 Filmregisseuren in 478.859 Engagements und 330.142 Filmproduktionen in den Jahren 1900 bis 2010 einbezieht, wird dieser Mechanismus getestet. Es zeigt sich, dass sowohl Vertrautheit als auch Diversität einen Großteil des Kritiker- und Karriereerfolgs der Regisseure erklären. Interaktionseffekte zeigen zudem, dass Diversität einen stärkeren Effekt auf künstlerischen Erfolg ausübt, wenn sie in vertrauten Strukturen eingebettet ist. Insgesamt erweitert die Studie unser Verständnis davon, wie Gruppen- und Netzwerkstrukturen individuellen Karriereerfolg beeinflussen.
    Date: 2014
  7. By: Agustin Casas; Yarine Fawaz; Andre Trindade
    Abstract: Using the daily trade of futures from the prediction markets site Intrade, we pin down the effect of printed newspapers endorsements (announcement of an explicit support for a political candidate) on the candidates' likelihood of winning. It is established that unexpected endorsements have a large impact on voters' behavior. However, we show that this effect is only true when the endorsement is a coherent one: if a newspaper that praises conservative (liberal) policies endorses a candidate with liberal (conservative) ideas, the endorsement does not impact the candidate's probability of winning, as it is regarded as incoherent. Our measure for coherence comes from Gentzkow and Shapiro (2005), but we also use Ansolabehere and Snyder (2004)'s \propensity to endorse Democrats" to show that a surprise endorsement has a large and potentially tipping effect in a tied contest
    JEL: L82 D7
    Date: 2014–07

This nep-cul issue is ©2014 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.