nep-cul New Economics Papers
on Cultural Economics
Issue of 2015‒02‒22
three papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. A study on business structure of E-book in non-English Language: Case study of Japan By Ueda, Masashi
  2. Migration, Diasporas and Culture: an Empirical Investigation By Paul Collier; Anke Hoeffler
  3. Analysis on switching cost versus bundling price under consumer adoption for choosing smart TV over pay TV By Hong, Ahreum; Yu, Eun; Hwang, Junseok

  1. By: Ueda, Masashi
    Abstract: The competitive model of e-book is a little bit different from other contents business like movie, television, music, etc. Partially it depends on cultural policy of each countries but it is affected by bargaining power among publishers and distributors. In English Language market we can refer authoritative report like OECD (2012) or working papers like Johnson. They are focusing on trading contract or structure of e-book market in U.S.A., U.K., Australia, Canada, etc.. In Japan and maybe some developed European continental countries the assortment of e-book is limited and distributor cannot expand its sales like as England although according to JAGAT (2010) Japanese e-book market ($574 million)was third times as that of the U.S.($169 Million) in 2009.
    Date: 2014
  2. By: Paul Collier; Anke Hoeffler
    Abstract: Using global data we examine the dynamics of migration from developing to developed countries.  Origin and destination countries are characterized by substantial diffrences in incomes, political rights and cultures.  Incentives as well as costs shape the decision to migrate.  One powerful dynamic effect is that diasporas increase migration, mainly because they lower the cost of migration.  Diasporas assist the next wave of migrants by overcoming the high cost of the emigration, in particular when the origin country is far away and poor.  The interaction between the diaspora and cultural distance is also significant.  Diasporas in culturally distant countries appear to be particularly useful in overcoming the cost of migration.  Culturally distant diasporas are less likely to assimulate and maintain closer links with their country of origin, while diasporas from culturally similar countries are more likely to assimulate and thus be less useful to potential new migrants.
    Keywords: Migraiton, development, culture
    JEL: O15 Z1
    Date: 2014–08–02
  3. By: Hong, Ahreum; Yu, Eun; Hwang, Junseok
    Abstract: The emergence of smart TV device encourages the reconsideration of the customer's subscription on the pay TV so that the phenomenon of cord-cutting evokes the other dimension of MVPD (Multi-Channel Video Programming Distribution) industry itself. Two major paths to adopt the new platform in MVPD market cover the switching cost and effect for the new platform such as smart TV and restrain the discount price by bundling triple-play which is one provision over a single broadband connection of two bandwidth-intensive services such as high-speed Internet access and television, and the latency-sensitive telephone. The research question over this simultaneous equation model exhibits that rate of customer subscription affects with more attention from demand-pull phenomenon by the high switching cost versus bundling price for multiple play service in behavioral economics way. Behavioral economics can explain the way of consumer's choice by providing it with more realistic psychological foundations. The hypothesis investigates the incentive mechanism has positive effect from the discount rate by tying the product bundling within MVPD service provision. Shapiro and Varian (1998) examine some of the business strategy implications of switching costs at a lay reader level. The switching cost results in the lock-in effect and takes scale economies of demand side. Farrell and Shapiro (1989) mention that once they are locked in, they can be a substantial source of profit whether it is substation or not. Also customer left the current service due to that cost. The prerequisite for switching cost investigate the product complexity (Gatignon and Robertson, 1992; Klemperer, 1995), heterogeneity of supplier in market (Schmalensee, 1982), the product diversity from the supplier side (Blattberg and Deighton, 1996; Klemperer, 1995; Ram and Jung, 1990), the level of modification in consideration of customer demand (Bhardawaj et al., 1993), the experience of alternatives (Bhattachary et al., 1995), the experience of switching choice (Bhattacharya et al.,1995; Nilssen, 1992), and time limitation of selection pressure or individual characteristic of risk aversion could be the factor to reorganization of switching cost by customer. Previous literature tries to explore the path and find out the factors which effect on the customer's switching behavior.
    Keywords: Pay TV market,Switching cost,Bundling price,Smart TV,Simultaneous Equation Modeling
    JEL: L22 L82
    Date: 2014

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