nep-cul New Economics Papers
on Cultural Economics
Issue of 2015‒09‒26
fourteen papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  2. Culture-based products: integrating cultural and commercial strategies. Cases from the luxury perfumery industry By Chiara Isadora Artico; Michele Tamma
  3. Mega cultural events: Does attendance affect residents’ perceptions of a city’s identity? By José Freitas Santos; Laurentina Vareiro; Paula Remoaldo; José Cadima Ribeiro
  5. Preference Externalities in Media Markets By Anderson, Simon P; Waldfogel, Joel
  6. Fair oder Foul? Punktevergabe und Platzierung beim Eurovision Song Contest By Millner, Ralf; Stoetzer, Matthias Wolfgang; Fritze, Christina; Günther, Stephanie
  7. Media and Polarization: Evidence from the Introduction of Broadcast TV in the US By Filipe Campante; Daniel Hojman
  8. The European Cultural Routes as engine for sustainable development. The case of Via Francigena in Tuscany By Enrico Conti; Sabrina Iommi; Stefano Rosignoli; Leonardo Piccini
  9. Cultural communication breakdowns: case studies from the field of intercultural management By Lívia Ablonczy-Mihalyka
  10. Images of the Past in British Popular Music of the 1960s: ‘Relevant History’ of the Kinks By Alexandra Kolesnik
  11. Cultural and Ethnic Differences in the Transitions from Work to "Retirement" of Rural Elders in China's Minority Regions By Connelly, Rachel; Maurer-Fazio, Margaret
  12. The Role of Cultural Leaders in the Transmission of Preferences By Verdier, Thierry; Zenou, Yves
  13. Dead Poet's Property - How Does Copyright Influence Price? By Xing Li; Megan MacGarvie; Petra Moser
  14. Culinary Tourism in Greece: Can the past define the future? A comparative analysis by using 10 case studies By Karagiannis, Dimitris; Metaxas, Theodore

  1. By: Karnowahadi Karnowahadi (Department of Business Administration, Semarang Polytechnic State (Polines)); Indah Susilowati (Faculty of Economics and Business, Diponegoro University (UNDIP)); Purbayu Budi Santosa (Faculty of Economics and Business, Diponegoro University (UNDIP))
    Abstract: Surakarta city has various types of cultural heritage, both physical and non-physical, and has a great potential in improving the tourism sector. Surakarta is located at the southern part of Central Java bearing economic functions as a surviving historic city of the country. Despite the great opportunities for cultural heritage in Surakarta, the city is currently facing threats of high traffic, excessive depletion of the natural environment in the city. This is due to underestimation on the market values of cultural heritage indevelopment decisions. Surakarta require an additional source of income for the maintenance and preservation of cultural heritage. The research of willingness to pay (WTP) of the visitor of the Surakarta cultural heritage is needed. Cultural heritage is something that must be preserved, because it is a public good that can carry the name of Surakarta city in the arena of world culture. The aim of this study is to estimate the economic benefit of cultural heritage in Surakarta city as the results would be able to provide insight to the value of this unique heritage society. The methods employed is contingent valuation method (CVM). The payment vehicle opted in this study is via accomodation, where a fixed heritage charge per night was included in the total accomodation bill in Surakarta. In CVM, the logit model was defined based on dichotomous choice method to estimate the WTP randomly with different starting bid value. A total of 225 respondents were interviewed in person, using random stratified sampling method. Utility preservation of cultural heritage Surakarta influenced by several factors, such as gender, age, level of visit frequent, type of work, and the amount of WTP. Gender, age, and type of work affect the utility respondent preservation of Surakarta cultural heritage is a significant positive. Level of visit frequent variable been negatively affect utility. WTP of respondents is greater than the status quo. Variable income, national origin, marital status, and education level influence the utility of Surakarta cultural heritage preservation is not significant. How to withdraw funds for the preservation of Surakarta cultural heritage can be done by adding to the hotel and restaurant taxes, adding to the ticket of admission, or added to the retribution.
    Keywords: economic-valuation, heritage, CVM, Surakarta
  2. By: Chiara Isadora Artico (Dept. of Management, Università Ca' Foscari Venice); Michele Tamma (Dept. of Management, Università Ca' Foscari Venice)
    Abstract: Today it is customary to speak of the collaborative potential of culture and business to achieve benefits in both cultural and business life. Making sense of the involvement of firms in culture, however, requires a better understanding of the link between cultural practices and projects and the development of business models.The aim of this paper is to focus on those companies that put culture at the core of their offering, with particular reference to those that can be defined as culture-based products. For these kinds of products, the creation, preservation, enhancement and transmission of a specific culture play a vital role of embedding a particular aesthetic and symbolic content in the cultural and consumption experience they offer. In order to explore the integration of cultural and commercial strategies that culture-based products seem to drive, we propose a framework of analysis, followed by an early comparative study through the investigation of a set of brands competing in the same field.
    Keywords: Integrated commercial and cultural strategies; Culture-based products; Cultural activities; Retail; Luxury Perfumery Industry
    Date: 2015–09
  3. By: José Freitas Santos (Porto Polytechnic, Institute of Accounting and Business/CECEJ and Universidade do Minho/NIPE); Laurentina Vareiro (School of Management, Polytechnic Institute of Cávado and Ave); Paula Remoaldo (Department of Geography – Institute of Social Sciences, University of Minho); José Cadima Ribeiro (School of Economics and Management and NIPE, University of Minho)
    Abstract: Events are frequently planned with a goal of attracting tourists to a destination. However, studies about the impact of a mega cultural event on residents’ identity are scarce. This research is based on the premise that hosting a mega cultural event can, to a significant degree, change a few of the attributes of the city’s identity as it is perceived by its residents. Specifically, the objective of the study is to identify the attributes of the city and compare the differences found between different groups of residents (attendees vs. non-attendees) before and after a mega cultural event. For this purpose, we focus our attention on Guimarães the ECOC 2012 (2012 European Capital of Culture) and the perceptions of the residents of this city. Several significant findings are reported and their implications for event managers and public policy administrators presented, along with the limitations of the study.
    Keywords: City’s identity; Residents’ perceptions of effects; Mega cultural event; Event-induced tourism; Guimarães, Portugal.
    Date: 2015
  4. By: Maimon Herawati (Journalism Studies, Communication Science Faculty Universitas Padjadjaran)
    Abstract: South Korean’s Hallyu came to Indonesia more than a decade ago and still dictating the popular culture in Indonesia. This research aims to understand the behavior of Indonesian female students in consuming the Hallyu products, notably Korean dramas. Qualitative research method was conducted using depth interview and focus group discussion technique. Snowball sampling was chosen in order to examine wider Hallyu’s pop culture lovers. The lovers were categorized using George Gerbner’s into heavy, moderate, and light viewer. It is found that light and moderate viewers do not purchased Korean-related product in order to express their interest. On the contrary, heavy viewers are keen to purchase goods related to Korea. They are also very active in discussion at netcafe such as Soompi. The heavy viewers also acted as cultural intermediaries of Korean pop culture, who collect pop culture contents and offer them to other Korean pop culture lovers. However, few heavy viewers changed their pattern into becoming moderate and light viewers due to the repetitive content of Korean dramas. Another reason for the change is the uncomfortable feeling of watching ‘public display affection’ scenes as in recent Korean drama trend. As the cultural waves come and go, it is important to understand the waning interest of some audiences. In order to explore more, wider and deeper research is needed.
    Keywords: Hallyu, cultural intermediaries, cultural consumer, Indonesia
  5. By: Anderson, Simon P; Waldfogel, Joel
    Abstract: Media industries typically exhibit two fundamental features, high fixed costs and heterogeneity of consumer preferences. Daily newspaper markets, for example, tend to support a single product. In other examples, such as radio broadcasting, markets often support multiple differentiated offerings. Both contexts can deliver preference externalities, when the options and well-being for consumers depend on the number and mix of consumers according to their content preferences. This chapter presents evidence on these fundamental features of media markets. We then incorporate these features into a suite of theoretical models to obtain both a description of media markets as well as predictions for how they would be expected to function. In a third section we turn to “results,” i.e. empirical evidence on the questions illuminated by the theoretical models. We then explore the effects of technological change, and we suggest directions for future work.
    Keywords: broadcasting; differentiation; entry; media markets; preference externalities
    Date: 2015–09
  6. By: Millner, Ralf; Stoetzer, Matthias Wolfgang; Fritze, Christina; Günther, Stephanie
    Abstract: Spätestens seit dem letztjährigen Auftritt von Conchita Wurst mit ihrem provokanten Mix aus männlichen und weiblichen Zügen hat der Eurovision Song Contest (ESC) in ganz Europa Aufmerksamkeit erregt. Neben der großen öffentlichen Teilnahme existieren aber auch eine ganze Reihe wissenschaftlicher Untersuchungen zu möglichen Einflussfaktoren der Punktevergabe beim ESC. Ziel der vorliegenden Arbeit ist es, auf Grundlage einer eigenen empirischen Datenerhebung verschiedene Faktoren hinsichtlich ihres Einflusses auf die Bewertung der Auftritte beim ESC zu untersuchen. Im Mittelpunkt steht die Frage, ob es systematische Einflüsse gibt, die die Chancen eines Songs Punkte zu erhalten, beeinflussen. Dazu werden alle Teilnehmerländer für den relevanten Zeitraum der Jahre 1999 bis 2014 betrachtet. Im Mittelpunkt stehen drei Hypothesen zum Einfluss (1) des Startplatzes, (2) der Songsprache und (3) eines möglichen Blockvoting. Die Ergebnisse der vorliegenden Untersuchung zeigen, dass der Startplatz den deutlichsten Einfluss auf die Bewertung hat. Das heißt, je später der ESC-Auftritt stattfindet, desto besser wird er bewertet. Sogenanntes Blockvoting oder politisches Voting innerhalb gemeinsamer Kultur- und Sozialräume, bspw. aus Solidarität, Ethnizität oder wegen gemeinsamer politischer Präferenzen, konnte nicht (zweifelsfrei) identifiziert werden. Zusammenfassend spricht dies für dynamische Entwicklungen bei der Punktevergabe, die zum Teil exogen (kulturell, sozial und politisch) determiniert aber auch endogen durch Antizipation der Punktevergabe anderer Länder hervorgerufen werden. Beides verhindert die Ermittlung stabiler Wirkungszusammenhänge und damit auch die Prognose von Punkteresultaten. Insoweit sind Qualität oder zumindest Popularität und zufällige Einflüsse ausschlaggebend für das Abschneiden eines Beitrags. Dies ist im Hinblick auf den Anspruch des ESC ein fairer Wettbewerb zu sein aber ein eher hoffnungsvolles Ergebnis.
    Abstract: The performance of Conchita Wurst at the European Song Contest (ESC) in 2014 has attracted a lot of public interest and awareness. Her performance intentionally is a statement of tolerance and individual freedom and triggered a debate on the factors influencing the success or failure of a particular song, i.e. the points a performance receives. To what extent the sex of the artist, the language of the song or political preferences and geographical proximity impact aggregate voting behavior and thus the odds of winning the contest? This paper bases on the voting-data from 1999 to 2014 and investigates three hypotheses, i.e. the impacts of (1) the serial position of a performance, (2) the language of the song and (3) the existence of voting blocs. By analyzing a sample of the aggregate points of 394 songs this study shows that ordering effects when judging the songs are at hand: Participants that perform later receive more points on average. There is no - or at least only very weak - evidence for voting bias on the basis of geography and political voting blocs or linguistic preferences. This outcome strikingly contradicts a lot of other empirical studies as to voting patterns in the ESC. Two explanations are put forward: First, the voting behavior is an endogenous variable. If it is well known that a country receives votes due to political preferences and not because of the quality of its song the other countries anticipate this and tend to give less points. Thus at the aggregate level 'logrolling' of points inside voting blocs are cancelled out. Second, a closer look at the literature reveals that a lot of empirical studies identify voting blocs, but these voting blocs are almost always different groups of various countries. Summing up, it emerges that there are very few stable patterns of voting behavior, probably due to dynamic changes of political, cultural and social preferences. Therefore the evidence backs the idea that the quality of a song or at least the popularity of a performance dominate the success. This is certainly a favourable outcome given the goal of a fair and impartial song contest.
    Keywords: Eurovision Song Contest,ESC,Punkte,Punktevergabe,Platzierung,Erfolgsfaktoren,voting behavior,bloc voting,popular culture,success factors,points,winner
    JEL: D72 D74 L82 Z10
    Date: 2015
  7. By: Filipe Campante; Daniel Hojman
    Abstract: This paper sheds light on the links between media and political polarization by looking at the introduction of broadcast TV in the US. We provide causal evidence that broadcast TV decreased the ideological extremism of US representatives. We then show that exposure to radio was associated with decreased polarization. We interpret this result using a simple framework that identifies two channels linking media environment to politicians? incentives to polarize. First, the ideology effect: changes in the media environment may affect the distribution of citizens? ideological views, with politicians moving their positions accordingly. Second, the motivation effect: the media may affect citizens? political motivation, changing the ideological composition of the electorate and thereby impacting elite polarization while mass polarization is unchanged. The evidence on polarization and turnout is consistent with a prevalence of the ideology effect in the case of TV, as both of them decreased. Increased turnout associated with radio exposure is in turn consistent with a role for the motivation effect.
  8. By: Enrico Conti; Sabrina Iommi; Stefano Rosignoli; Leonardo Piccini (Istituto Regionale per la Programmazione Economica della Toscana)
    Abstract: Cultural and, in general, experiential tourism is nowadays a very promising market for areas so far remained on the margins of economic development, but rich in architectural and natural heritage. The initiative of the European Cultural Routes is therefore particularly interesting for a region like Tuscany, worldwide famous for the beauty and integrity of its smaller towns and rural landscapes. Public investments play of course a central role in these strategies of territorial development, and require increasingly sophisticated techniques for the assessment of economic, social and environmental impacts. When direct surveys are not possible, however, the use of existing data, appropriately processed referring to the area of interest, may be a viable alternative. The work presents the results of the application of three different estimating methods at the Tuscan case, based on geographic approach. The results are of course different, but they all confirm the widespread expectations about the leverage effect exerted by the cultural and landscape heritage on the local economic development
    Keywords: cultural tourism, economic impact
    JEL: L83
    Date: 2015
  9. By: Lívia Ablonczy-Mihalyka (Széchenyi István University)
    Abstract: Today’s business environment has become highly complex, dynamic and globalised. In today’s global world an understanding of what happens when people from different cultures meet and work together is quite essential for managers and leaders.This paper employs a qualitative approach to case studies collected from Hungarian managers who are in business contact with people belonging to various cultures. Over the last decade, research in intercultural management topics has received increased attention in literature. After reviewing the previous studies regarding cross-cultural misunderstandings, the author presents case-studies focusing on intercultural interaction issues in workplaces in Hungary. The paper summarises the differences in (1) management style, (2) staff behaviour and (3) attitudes and values. The findings of this study prove that the barriers of communication come from the national culture’s influence in the workplace on the behaviours of people with different identities. Moreover, culture also influences people’s way of thinking and results in different understanding toward the vision and the purposes of enterprises. The findings show that the current challenges caused by the globalisation pressures in the realm of economics result in the need to review leaders’ management practices. The findings also indicate that further research is needed to support work communities in order to successfully copel with increasing cultural diversity.
    Keywords: international business setting, cultural diversity, intercultural misunderstanding, critical incidents
    JEL: F23 J24 D22
  10. By: Alexandra Kolesnik (National Research University Higher School of Economics)
    Abstract: In the late 1960s, British popular music, evolution of its aesthetic and thematic traits had some peculiarities. Light guitar-based music was flavored by English folklore and exceptional British subjects, live performances demonstrated certain theatricality, imagery of rock bands was linked to British cases becoming a peculiar way of exhibiting their ‘Englishness’. As a result of new British musicians’ desire to determine their own sound, they tend to rework the past and actively include national history subjects in their music. The paper analyzes the mechanisms of treatment with the past in British popular music of the late 1960s on the example of the rock band, the Kinks. Focused largely on the musical style of American blues on their first albums, since 1967 year the Kinks turned to British musical tradition rediscovering mainly music hall. Despite the fact that other British Invasion leaders, the Beatles and the Rolling Stones, also borrowed the music hall imagery, the Kinks embraced not only the external music hall style, but deeply adopted music form and subjects. An appeal to the widely recognizable tradition of the British music hall was occurring on the wave of general re-actualization of national past in England. The paper describes, firstly, particular historical subjects that became popular among the British audience in the 1960s; secondly, the format of treatment with the past, which is conditionally characterized as a ‘relevant history’
    Keywords: popular music studies, popular culture, British popular music history, the Kinks, past, historical imagery
    JEL: Z
    Date: 2015
  11. By: Connelly, Rachel (Bowdoin College); Maurer-Fazio, Margaret (Bates College)
    Abstract: This paper considers the work to "retirement" transitions of the rural elders in China who reside in seven regions with substantial minority populations. The data employed, those of the China Household Ethnicity Survey, are ideal for examining the effect of cultural differences on this key lifecycle event, the reduction of market-oriented work with age. Membership in particular ethnic minority groups is used to proxy the potential differences in the culture of aging and caregiving. We find that beyond education, the strongest predictors of labor force participation for China's rural elders are age, disability, widowhood, and ethnic minority status. The effects of ethnic minority group status on labor force participation are robust and the differences in participation among ethnic groups are sometimes large. It is thus misleading, in the analysis of the labor force participation of China's rural elders, to simply dichotomize ethnic minority and majority (Han) group membership. Further careful research is needed to help understand the differences in perceptions of aging among China's rural ethnic minority groups.
    Keywords: ethnicity, retirement, labor force participation, elders, aging, China Household Ethnicity Survey
    JEL: J14 J15 J16 J26 D13 O53
    Date: 2015–09
  12. By: Verdier, Thierry; Zenou, Yves
    Abstract: This paper studies the population dynamics of preference traits in a model of intergenerational cultural transmission with cultural leaders who compete for oblique socialization. We show that by adding this new channel in the transmission of preferences, i.e. cultural leaders, in steady-state, there cannot be an equilibrium with total assimilation or total integration of the population.
    Keywords: assimilation; cultural leaders; integration; Socialization
    JEL: J13 J15 Z10
    Date: 2015–09
  13. By: Xing Li; Megan MacGarvie; Petra Moser
    Abstract: This article exploits a differential increase in copyright under the UK Copyright Act of 1814 - in favor of books by dead authors – to examine the influence of longer copyrights on price. Difference-in-differences analyses, which compare changes in the price of books by dead and living authors, indicate a substantial increase in price in response to an extension in copyright length. By comparison, placebo regressions for books by dead authors that did not benefit from the extension indicate no differential increase. Historical evidence suggests that longer copyrights increase price by improving publishers’ ability to practice intertemporal price discrimination.
    JEL: K00 N33 O3
    Date: 2015–09
  14. By: Karagiannis, Dimitris; Metaxas, Theodore
    Abstract: This paper examines the possibility that gastronomy, based on ancient Greek values, could be part of the answer for economic prosperity through the development of food tourism in a country with harsh economic environment such as Greece. We examine if local food, culture and tourism could become great fields of new entrepreneurial and thus regional development when paired with knowledge, innovation and quality. We shall examine what the historical background on ideas such as gastronomy, entrepreneurship, and innovation in ancient Greek culture; in order prove that the answer to contemporary business practicing might be hidden in the history of the country. Real examples of innovative entrepreneurship related to gastronomy will be presented as case studies. By analyzing them, we will prove that there is an answer for potential business growth, when tailor-made solutions are applied that take into account the unique characteristics of a place while utilizing its competitive advantages.
    Keywords: culinary tourism, gastronomy, economic development, comparative analysis, Greece
    JEL: O20 R11 R58 Z19
    Date: 2015

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