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on Cultural Economics |
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Issue of 2014‒11‒12
four papers chosen by Roberto Zanola Università degli Studi del Piemonte Orientale “Amedeo Avogadro” |
| By: | Peitz, Martin; Reisinger, Markus |
| Abstract: | We survey the economics literature on media as it applies to the Internet. The Internet is an important driver behind media convergence and connects information and communication technologies. While new Internet media share some properties with traditional media, several novel features have appeared: On the content side, aggregation by third parties that have no editorial policy and user-generated content have become increasingly important. On the advertiser side, fine-tuned tailoring and targeting of ads based on individual user characteristics are common features on many Internet media and social networks. On the user side, we observe increased possibilities of time-shifting, multi-homing, and active search. These changes have gone hand-in-hand with new players entering media markets, including search engines and Internet service providers. Some of these players face novel strategic considerations, such as how to present search results. In response to these changes, an emerging economics literature focuses on the allocative and welfare implications of this new media landscape. This paper is an attempt to organize these contributions and provide a selective account of novel economic mechanisms that shape market outcomes of Internet media. A large body of work has focused on the advertising part of the industry, while some studies also look at content provision and the interaction between the two. |
| Keywords: | Internet , media economics , digital media , targeting , news aggregation , search advertising , display advertising , two-sided markets |
| JEL: | L82 L86 M37 L13 D21 D22 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:mnh:wpaper:37116&r=cul |
| By: | Nestor Duch-Brown (European Commission - JRC - IPTS); Bertin Martens (European Commission - JRC - IPTS) |
| Abstract: | It is often assumed that consumers benefit from the internet because it offers a “long tail” with more variety of products to choose from. However, search costs may block the long tail effect and result in the dominance of superstars. This paper examines the variety hypothesis in the entire online market for digital music downloads in 17 countries over the period 2006-2011. First, we show that the entire distribution of legal music downloads is heavily skewed. Second, we hypothesise that a wide range of online information channels (sales and discovery platforms) play a role in this market. We find that the reduction of search costs implied by the generalisation of online information tools transforms demand as a result of changes in the dispersion of preferences. Ubiquitous and very popular discovery channels such as Facebook and iTunes tend to push consumers towards the superstars by shifting the demand curve but also towards the long-tail since they also generate rotations that promote niches. Conssequently, both the superstar and the long tail effects emerge even in mature digital markets. |
| Keywords: | digital markets, search costs, information, sales concentration, online markets |
| JEL: | C46 D12 L82 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:decwpa:2014-09&r=cul |
| By: | Yamamura, Eiji; Shin, Inyong |
| Abstract: | Amount of consuming imported goods is thought to influence consumer’s view and attitude toward the country which export the goods. This paper examines effect of viewing Japanese animation on attitude towards Japan in Korea. Major findings are that the more frequently adult Korean view Japanese animation, the more they are likely to accept Japanese as colleagues at work after controlling for endogeneity bias by using instrumental variables. This implies that, through consuming imported cultural goods, people learned the labor quality of the trade partner, which reduces the information asymmetry about the labor quality of the exported country. Consequently, people come to accept the labor force from the trade partner in the labor market. Labor market becomes more open to migrant from the exported countries. The modern cultural goods such as Japanese animation representing “Cool Japan†have the externality in the labor market of its imported country. |
| Keywords: | Anime; Immigrants; Work place; Neighbor; Trade; Externality; Cool Japan. |
| JEL: | D12 D74 F16 Z11 Z18 |
| Date: | 2014–09–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:58467&r=cul |
| By: | Frank A.G. den Butter (VU University Amsterdam); Jelle Joustra (VU University Amsterdam, the Netherlands) |
| Abstract: | The organization of Electronic Dance Music (EDM) events has become a major export product in the Netherlands. In order to respond quickly to the new trends and needs, innovative forms of cooperation between producers are to be set up for the organization of exciting new events. A case study on how these EDM events are actually organised in the Netherlands shows that the best way to do it is through hybrid forms of organisation, which combine horizontal forms of organisation through the market and vertical forms through the hierarchy. As EDM events are characterised by much asset specificity, the perspective of transaction cost economics indicates why this industry relies on hybrid forms of organisation. Trust between the collaborating partners, intrinsic motivation to be professional in the design and creation of new, ground-breaking music sensations and an extensiv e use of social media play a key role in lowering the transaction costs in the dance industry. |
| Keywords: | Industrial organization, coordination costs, transaction cost economics, resource based view, cooperation in hybrid organizations, Electronic Dance Music (EDM) events, trust, use of social media |
| JEL: | D23 D85 E23 L23 L24 L82 O31 P13 |
| Date: | 2014–07–24 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20140095&r=cul |