nep-cul New Economics Papers
on Cultural Economics
Issue of 2016‒02‒29
five papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale

  1. The Efficiency of the Art Market: Evidence from Variance Ratio Tests, Linear and Nonlinear Fractional Integration Approaches By Goodness C. Aye; Luis A. Gil-Alana; Rangan Gupta; Mark Wohar
  2. Experience and Brokerage in Asset Markets: Evidence from Art Auctions By Bruno, Brunella; Garcia-Appendini, Emilia; Nocera, Giacomo
  3. Measuring creativity: Learning from innovation measurement By Stéphane Lhuillery; Julio Raffo; Intan Hamdan-Livramento
  4. Can Internet news media firms make good deals with Internet portals by making coalitions? By Lee, Seungjoo; Kwon, Youngsun
  5. Corporate Culture, Societal Culture, and Institutions By Guiso, Luigi; Sapienza, Paola; Zingales, Luigi

  1. By: Goodness C. Aye (Department of Economics, University of Pretoria); Luis A. Gil-Alana (University of Navarra, Faculty of Economics and ICS (NCID), Spain); Rangan Gupta (Department of Economics, University of Pretoria); Mark Wohar (Department of Economics, University of Nebraska-Omaha, USA and Loughborough University, UK)
    Abstract: This paper investigates the weak-form efficiency hypothesis for the art market. We consider 15 art price indices namely: Contemporary, Drawings, France, Global index (Euro), Global index (USD), Modern art, Nineteenth century, Old Masters, Paintings, Photographies, Postwar, Prints, Sculptures, UK and US. We use quarterly data from 1998:1 to 2015: 1. We employ both standard and non-parametric single and joint variance ratio tests while accounting for small sample bias through the use of the wild bootstrapping. We show that the majority of the art market price indices are inefficient with the exception of the Old Masters that consistently prove efficient under both individual and joint tests. Also we cannot reject the null hypothesis of random walk or martingale for Contemporary, US and UK indices albeit not as strong as Old Masters suggesting that these three art indices are less predictable. Our results imply that future price movements in Old Masters, and to some extent in Contemporary, US and UK indices are determined entirely by information not contained in the price series whereas the remainder of the indices can be predicted using price information. However, confronting the data with both linear and nonlinear long memory models, we observe the following series can have unit roots: Paints, Prints, Photographies, Nineteenth century, Modern Art, US, France and Drawings and their markets are therefore efficient to a certain point. Post war, Sculpture, Drawings, France, Contemporary and France have values of the fractional parameter d significantly different from 0 and 1. The US and Contemporary art markets are indisputably efficient based on both long memory and variance ratio tests.
    Keywords: Art market, market efficiency, variance ratio tests, random walk, martingale, non-parametric
    JEL: C14 G14 G15
    Date: 2016–02
  2. By: Bruno, Brunella; Garcia-Appendini, Emilia; Nocera, Giacomo
    Abstract: Focusing on the art market, where auction houses act as brokers between art sellers and buyers, we investigate whether more experienced brokers achieve better performance as information providers. We use a unique data set of auctions of Italian paintings in various houses around the world, and we measure experience as the number of times an auctioneer has auctioned the artworks of a certain artist in a given location. We find that more experienced auction houses (i) are more likely to sell and (ii) provide more precise pre-sale estimates. These findings suggest that experience plays an important role for brokers to reduce illiquidity and opacity in markets with asymmetric information.
    Keywords: Brokerage, information, experience, art auctions
    JEL: G24 D44 D82 Z11
    Date: 2016–02
  3. By: Stéphane Lhuillery (ICN Business School & BETA-CNRS 7522, Nancy, France.); Julio Raffo (Economics and Statistics Division, World Intellectual Property Organization, Geneva, Switzerland.); Intan Hamdan-Livramento (Economics and Statistics Division, World Intellectual Property Organization, Geneva, Switzerland.)
    Abstract: There is a growing interest in broadening the measurement scope of innovation and considering “creative” activities, meaning that the usual indicators of innovation satisfy neither scholars nor policy makers. Conceptually, there is not much difference between innovative and creative activity: but to what extent are current measures that capture innovation relevant for creativity? Can the new measures for creativity benefit from the experience accumulated through R&D and innovation? Our article provides insights and lessons learned from using measures of innovative activities for scholars who are interested in capturing creative activities. We underscore the difficulties faced when measuring innovation and draw some parallels of these difficulties with the efforts undertaken to measure creativity.
    Keywords: innovation metrics; creativity measurement; patents; copyrights.
    JEL: O31 O32
    Date: 2016–02
  4. By: Lee, Seungjoo; Kwon, Youngsun
    Keywords: News Content,Internet Portal,Revenue Sharing,Coalition,Core,Nash Strong Equilibrium
    Date: 2015
  5. By: Guiso, Luigi; Sapienza, Paola; Zingales, Luigi
    Abstract: While both cultural and legal norms (institutions) help foster cooperation, culture is the more primitive of the two and itself sustains formal institutions. Cultural changes are rarer and slower than changes in legal institutions, which makes it difficult to identify the role played by culture. Cultural changes and their effects are easier to identify in simpler, more controlled, environments, such as corporations. Corporate culture, thus, is not only interesting per se, but also as a laboratory to study the role of societal culture and the way it can be changed.
    Keywords: corporate culture; cultural economics; institutions
    JEL: K4 Z1
    Date: 2015–02

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