nep-cul New Economics Papers
on Cultural Economics
Issue of 2017‒01‒08
five papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale

  1. Business networks, social capital and the productivity of creative industries in Indonesia By Fikri Zul Fahmi
  2. Challenges that face cultural tourism development in conflict and post-conflict regions: the case of Kurdistan By Kadhim Magdid Braim; Scott McCabe; Jillian Rickly; Mohamed Gadi
  3. As Seen on TV: Price Discrimination and Competition in Television Advertising By Gil, Ricard; Riera-Crichton, Daniel; Ruzzier, Christian
  4. Community Leaders and the Preservation of Cultural Traits By Anja Prummer; Jan-Peter Siedlarek
  5. A Theory of Bundling Advertisements in Media Markets By Kevin M. Murphy; Ignacio Palacios-Huerta

  1. By: Fikri Zul Fahmi
    Abstract: This study examines the role of social and professional networks in the productivity of creative firms in Indonesia. In so doing, mixed methods are employed, including multilevel modelling as well as qualitative analysis, which is also performed to elaborate further on the process in which networking affects productivity. The Indonesian government promotes traditional businesses as creative industries, but they actually have different characteristics and networks. Therefore, in this paper creative and traditional cultural industries are differentiated. The results of multilevel analysis show that social capital is associated differently with the productivity of both types of industries. Creative industries appear to benefit from friendship, which facilitates their networking and creative processes. Meanwhile, friendship is negatively associated with the productivity of traditional cultural industries. This conclusion is affirmed by the qualitative analysis, which demonstrates that the relationship between friendship and productivity is rather complex. On the one hand, friendship helps firms find and develop their networked consumers. On the other hand, such strong ties between firm owners often lead to social events and gathering and thus, eliminate competition. Further to this, enhancing the productivity of these industries is better done not by forming associations which may only strengthen their bonding ties. Rather, providing common spaces that can facilitate cross-fertilization of ideas in a serendipitous and inclusive climate would be more effective.
    Keywords: creative industries; business networks; social capital; Indonesia
    JEL: D22 R11 L25 L26
    Date: 2016–12
  2. By: Kadhim Magdid Braim; Scott McCabe; Jillian Rickly; Mohamed Gadi
    Abstract: Tourism has multiple economic benefits for host countries that receive tourists. Policy makers are becoming more and more aware of the importance that appropriate tourism management has to maximise the benefits that tourism flows can bring. However, many developing countries suffer from a lack of an integrated tourism policy. Particular issues are faced in those countries that are dealing with local conflicts (sometimes over many years). These countries often lack investment in tourism resources even though they might have a huge potential and are rich in heritage and cultural assets. Conflict always changes the priorities of nations, and poses many challenges to the policy, and management for developing tourism as a viable economic sector. Post-conflict areas have barriers to tourism development, such as poor or damaged infrastructure, lack of services, low investment, political instability, a need to maximize revenue income, and the lack of planned tourism management. A current example of such a conflict area is Kurdistan. In 2013, the number of tourists were 2,952 027, yet in 2014 and 2015 the number had decreased to 1529434 and 1117501 respectively (General Board of Tourism, Kurdistan Regional Government, 2016). In addition, as a result of popular uprisings that occurred across the Middle East, there was a decline of 8% in tourism growth in these destination regions during 2011 (UNWTO, 2012). There is much research about cultural tourism management issues, challenges, sustainability, but there is a lack of studies undertaken to know how post-conflict issues interact or change or the effects of emergent situations on cultural and heritage tourism planning and management. Kurdistan, which is largely defined as a northern region of modern Iraq, can be considered one of the longest conflict areas since the end of World War 1, and has suffered from neglect of investment in its economic infrastructure over many decades. After the new Kurdistan self-governing region was recognised officially by the Iraqi government in 2003, there has been a sharp increase in the number of tourism arrivals, in particular, in last ten years, due to its location, climate and heritage. Tourism is seen as an important economic sector in Kurdistan and specifically leisure tourism. However, there is still wide scope to increase tourism in Kurdistan based on its diversity of cultures and cultural heritage sites. The UN World Tourism Organization estimated that cultural tourism currently accounts for 37% of the aggregate tourism in the world (Boyd, 2002; McKercher and Cross, 2002). Such potentially profitable tourism resources in Kurdistan has been neglected so far for the purpose of tourism. This paper aims to fill this gap and explore potentials and issues for developing cultural tourism in post conflict areas and in new autonomous regions such as Kurdistan, and to understand what cultural tourist strategy should be designed and implemented to develop tourism sector in Kurdistan to be successful, competitive and sustainable. By looking of the perspective of different stakeholders in Kurdistan, the study can understand the challenges and opportunities in developing cultural tourism in post conflict areas. The paper reports data from a series of focus groups conducted with residents and tourist, and in-depth interviews with policy makers and tourism experts in Erbil, Kurdistan, in 2015.
    Keywords: ???
    Date: 2016–12
  3. By: Gil, Ricard; Riera-Crichton, Daniel; Ruzzier, Christian
    Abstract: In this paper we examine the empirical relationship between price discrimination and competition in television advertising. While most empirical papers on the topic document a positive relationship, we find that price discrimination is negatively related to competition (as measured by the number of competing firms), a result that is consistent with conventional wisdom. Our results also show that only incumbent stations (unlike entrants) respond by engaging less in price discrimination when faced with a more competitive environment. Our evidence suggests that incumbents may use price discrimination as a strategic tool to accommodate entry - a strategy that has received scant attention in the existing entry literature.
    Keywords: competition, price discrimination, Spanish television
    JEL: D22 D43 L11 L82
    Date: 2016–12–21
  4. By: Anja Prummer (Queen Mary University of London); Jan-Peter Siedlarek (Federal Reserve Bank of Cleveland)
    Abstract: We explain persistent differences in cultural traits of immigrant groups with the presence of community leaders. Leaders influence the cultural traits of their community, which have an impact on the group's earnings. They determine whether a community will be more assimilated and wealthier or less assimilated and poorer. With a leader cultural integration remains incomplete. The leader chooses more distinctive cultural traits in high productivity environments and if the community is more connected. Lump sum transfers to immigrants can hinder cultural integration. These findings are in line with integration patterns of various ethnic and religious groups.
    Keywords: Cultural transmission, Leadership, Immigrants, Labor market outcomes, Social influence, Networks
    JEL: J15 Z10 D02
    Date: 2016–12
  5. By: Kevin M. Murphy; Ignacio Palacios-Huerta
    Abstract: Watching TV and other forms of media consumption represent, after sleeping and working, the main activity that adults perform in developed countries. We present a dynamic theory of commercial broadcasting where the media trade utility-raising goods (programs, information, and services) with audiences in exchange for their exposure to advertisements (utility-decreasing bads), and where goods are otherwise free to the audience except for their opportunity cost of time. Goods and bads are dynamically arranged, and as such traded in an intertemporal bundle. No monetary transfers take place between media and audiences, and this barter exchange is not contractually sustained. We study this dynamic problem in a model that captures the central characteristics of how commercial media markets operate. The model is rich enough to account for a variety of disparate evidence in television, radio, print media and the web.
    JEL: D11 D21 L21 L82
    Date: 2016–12

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