nep-cul New Economics Papers
on Cultural Economics
Issue of 2016‒07‒02
two papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale

  1. A Structural Model of Advertising Signaling and Social Learning: The Case of the Motion Picture Industry By Haiyan Liu
  2. Economists behaving badly: Publications in predatory journals By Wallace, Frederick; Perri, Timothy

  1. By: Haiyan Liu (Department of Economics, University of South Florida)
    Abstract: This paper empirically studies how social learning among consumers shapes ?firms' ?optimal strategies of using advertising to signal product quality. I present an equilibrium model that describes both consumers? and fi?rms' ?learning and decision-making under quality uncertainty. My model allows me to distinguish between two roles of informative advertising ?reaching consumers and signaling product quality. I apply the model to the U.S. motion picture theatrical market where advertising and social learning are two main factors for a new movie?'s success. The structural estimates imply that movie studios? signaling advertising only helps to reduce consumers'? uncertainty by less than 10 percent. Word-of-mouth is a much more efficient learning channel for consumers, reducing their uncertainty by more than 90 percent. I also ?find that around 27 percent of advertising spending for movies in my sample is used for signaling product quality, while 73 percent is used for reaching consumers. Studios? tendency to advertise more during the pre-release rather than the post-release weeks is explained to a large extent by the signaling purpose.
    Keywords: Advertising, Signaling, Social Learning, Information, Motion Picture Industry
    JEL: D22 D82 D83 L15 L82 M37
    Date: 2016–02
  2. By: Wallace, Frederick; Perri, Timothy
    Abstract: The extent of publishing in predatory journals in economics is examined in this paper. A simple model of researcher behavior is presented to explore those factors motivating an economist or other academic to publish in predatory journals as defined by Beall (2015). Beall’s lists are then employed to identify predatory journals and publishers included in the Research Papers in Economics (RePEc) archives. Once identified, the affiliations of authors publishing in these outlets are determined in order to identify the characteristics of those publishing in such outlets. The geographic dispersion of authorship is widespread. A very small subset of authors is registered on RePEc. Slightly more than forty percent of registered authors who publish in predatory journals in the data set have six or fewer publications, and hence might be considered inexperienced. A surprising number of authors who are in the RePEc top 5% also published in predatory journals in 2015.
    Keywords: Predatory Publications, RePEc
    JEL: A10 I2 I20
    Date: 2016–06–01

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