nep-cul New Economics Papers
on Cultural Economics
Issue of 2015‒05‒02
three papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Time spent on New Songs: Word-of-Mouth and Price Effects on Teenager Consumption By Noémi Berlin; Anna Bernard; Guillaume Fürst
  2. Mozart or Pelé? The Effects of Teenagers' Participation in Music and Sports By Cabane, Charlotte; Hille, Adrian; Lechner, Michael
  3. Culture, Institutions and Democratization By Gorodnichenko, Yuriy; Roland, Gérard

  1. By: Noémi Berlin (School of Economics, University of Edinburgh); Anna Bernard (Centre d'Economie de la Sorbonne - Ecole d'Economie de Paris); Guillaume Fürst (Department of Psychology and Educational Sciences, University of Geneva)
    Abstract: The stardom system characterizes creative industries: the demand and revenues are concentrated on a few bestselling books, movies or music. In this paper, we study the demand structure between bestsellers and new artists' productions in the music industry. We set up an experiment where participants face real choices situations. We crate three treatments to isolate the effect of information and incentives on diversity. In a first treatment, music is consumed for free without information. In a second one, subjects receive a prior information on others' evaluation of songs to study the effect of word-of-mouth. Finally, in a thrid one, a real market is introduced and music is bought. Significant evidence shows that word-of-mouth lowers diversity, while price incentives tend to lift it. In both treatments, subjects also react to the information or incentives nature
    Keywords: Experimental economics; Cultural Goods; Music industry; Stardom System
    JEL: D04 C9 Z1
    Date: 2015–03
  2. By: Cabane, Charlotte (University of St. Gallen); Hille, Adrian (DIW Berlin); Lechner, Michael (University of St. Gallen)
    Abstract: Using data from the German Socio-Economic Panel, this paper analyses the effects of spending part of adolescents' leisure time on playing music or doing sports, or both. We find that while playing music fosters educational outcomes compared to doing sports, particularly so for girls and children from more highly educated families, doing sports improves subjective health. For educational outcomes, doing both activities appeared to be most successful. The results are subjected to an extensive robustness analysis including instrumental variable estimation and a formal sensitivity analysis of the identifying assumptions, which does not reveal any serious problems.
    Keywords: child development, leisure time activities, matching estimation, SOEP
    JEL: I12 I18 J24 L83 C21
    Date: 2015–04
  3. By: Gorodnichenko, Yuriy; Roland, Gérard
    Abstract: We construct a model of revolution and transition to democracy under an individualistic and a collectivist culture. The main result is that, despite facing potentially larger collective action problems, countries with an individualistic culture are more likely to end up adopting democracy faster than countries with a collectivist culture. Our instrumental variable estimation suggests a strong and robust effect of individualistic culture on average polity scores and length of democracy, even after controlling for other determinants of democracy emphasized in the literature. We also give evidence that countries with collectivist culture are also more likely to experience autocratic breakdowns and transitions from autocracy to autocracy.
    Keywords: collective action; collectivism; culture; democratization; individualism
    JEL: H1 P48 Z1
    Date: 2015–04

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