nep-cul New Economics Papers
on Cultural Economics
Issue of 2015‒02‒16
eight papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Video Killed the Radio Star? Online Music Videos and Digital Music Sales By Peukert, Christian; Kretschmer, Tobias
  2. Monopoly Power in the Eighteenth Century British Book Trade: By David Fielding; Shef Rogers
  3. New Evidence on Development and the Diversity of Cultural Imports By Maria Masood; ;
  4. Turkey’s TV Drama (Dizi) Industry Deserves More Attention By Nader Habibi
  5. Rechts? Links? Liberal? Egal? Gründe für die Entstehung verzerrter Medieninhalte und Methoden zur Messung des Bias By Im Winkel, Niklas
  6. Culture, Selection, and International Migration By Renner, Laura; Krieger, Tim; Ruhose, Jens
  7. Are commercial ceilings appropriate for the regulation of commercial overload on free-to-air TV channels? By Rothbauer, Julia; Sieg, Gernot
  8. Asset Divestment as a Response to Media Attacks in Stigmatized Industries By Durand , Rodolphe; Vergne , Jean-Philippe

  1. By: Peukert, Christian; Kretschmer, Tobias
    Abstract: Sampling poses an interesting problem in markets with experience goods. On the one hand, free samples reveal product quality and help consumers to make informed purchase decisions (promotional eff ect). On the other hand, sampling may induce consumers to substitute purchases with free consumption (displacement eff ect). We look at this trade-off in the market for digital music where consumers can sample the horizontal quality of songs by watching free music videos online. Identifi cation comes from a natural experiment in Germany, where virtually all videos that contain music are blocked on a popular video platform due to a legal dispute with representatives of the rights-holders. We show that promotional and displacement eff ects cancel out in the sales performance of songs, whereas online music videos trigger sales of albums.
    JEL: L82 M37 D83
    Date: 2014
  2. By: David Fielding (Department of Economics, University of Otago, New Zealand); Shef Rogers (Department of English and Linguistics, University of Otago, New Zealand)
    Abstract: In conventional wisdom, the reform of British copyright law during the eighteenth century brought an end to the monopoly on the sale of books held by the Stationers’ Company, and the resulting competition was one of the driving forces behind the expansion of British book production during the Enlightenment. In this paper, we analyze a new dataset on eighteenth century book prices and author payments, showing that the legal reform brought about only a temporary increase in competition. The data suggest that by the end of the century, informal collusion between publishers had replaced the legal monopoly powers in place at the beginning of the century. The monopoly power of retailers is not so easily undermined.
    Keywords: book trade; publishing; copyright; retail monopoly
    JEL: D42 L12 N83 Z11
    Date: 2014–12
  3. By: Maria Masood; ;
    Abstract: To confront existing fears of cultural homogeneization with development, this paper study the relationship between per capita income and the diversity in cultural imports. Two dimensions of diversity are investigated: the number of geographical origins (extensive margin) and the distribution of cinema and music imports across exporters (intensive margin). In line with the predictions of a non-homothetic Melitz model, an increase in income is positively correlated with the number of sources but also with more concentration on the most efficient partners, namely American products. The results also reveal the existence of a nonlinear relationship between income and the extensive margin in latter stage.
    Keywords: Cultural diversity, Economic development, Audio-visual trade, Non homothetic preferences
    Date: 2015–01
  4. By: Nader Habibi (Brandeis University)
    Abstract: Turkish TV dramas (which are equivalent to soap operas in Western countries) have gained popularity in several countries in the past decade. They generate the largest amount of cultural export revenues and increase tourist interest in Turkey. Despite this positive contribution the TV drama industry does not receive adequate support from the Turkish government. The Turkish government must increase its financial and regulatory support for this industry. It should also create an independent committee of experts to review the TV drama projects that apply for government support.
    Date: 2015–01
  5. By: Im Winkel, Niklas (Helmut Schmidt University, Hamburg)
    Abstract: Der vorliegende Beitrag gibt einen Literaturüberblick zum Thema Media Bias, d.h. zu verzerrten Inhalten in der Medienberichterstattung. Es werden Gründe für die Entstehung von Media Bias diskutiert und die in der Fachliteratur beschriebenen Methoden zur Messung erläutert.
    Keywords: Media Bias; Medienökonomik; two-sided markets; media economics; Medienmacht; Medienmanipulation; Medienmärkte
    JEL: D72 D80 L82
    Date: 2015–01–25
  6. By: Renner, Laura; Krieger, Tim; Ruhose, Jens
    Abstract: This paper looks at the e ffect of cultural barriers on the skill selection of international migration. The data covers bilateral migration stocks by skill level in 2000 from about 99 sending countries to the main 15 destination countries. We use genetic distance as a proxy for cultural distance and exploit exogenous variation in genetic distance in 1500 to show that a higher genetic distance leads to a higher selectivity of migrants. This reveals that cultural traits are an important determinant of the skill mix of current migrant populations.
    JEL: F22 J61 Z10
    Date: 2014
  7. By: Rothbauer, Julia; Sieg, Gernot
    Abstract: Commercial ceilings not only restrict broadcasters in their decisions about commercial broadcasting time, but also affect their differentiation of program content. This study examines the welfare effects of commercial ceilings in a two-sided free-to-air TV market, taking into account welfare with respect to content differentiation. We identify a second-best commercial ceiling that maximizes welfare in the absence of enforceable program content regulation and identify the situations in which laissez faire is optimal. The deregulation of commercial broadcasting can improve welfare, even if the laissez-faire level of commercial broadcasting time is excessive.
    JEL: L82 M38 D61
    Date: 2014
  8. By: Durand , Rodolphe; Vergne , Jean-Philippe
    Abstract: In stigmatized industries characterized by social contestation, hostile audiences, and distancing between industry insiders and outsiders, firms facing media attacks follow different strategies from firms in uncontested industries. Because firms avoid publicizing their tainted-sector membership, when threatened, they can respond by divesting assets from that industry. The authors' analyses of the arms industry demonstrate that media attacks on the focal firm and its peers both increase the likelihood of divestment for the focal firm. Specifically, attacks on the focal firm are the most consequential, followed by attacks on peers in the same industry subcategory, and by attacks on peers in different subcategories. These findings shed new light on divestment as a response to media attacks in stigmatized industries and lead the authors to rethink impression management theory.
    Keywords: stigma; impression management; divestment; media; categories; reputation; defense industry
    JEL: L14 L60 M10
    Date: 2014–03–25

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