nep-cul New Economics Papers
on Cultural Economics
Issue of 2018‒06‒18
four papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale

  1. Conquering the box office: Factors influencing success of international movies in Russia By Gaenssle, Sophia; Budzinski, Oliver; Astakhova, Daria
  2. Is innovation happening in George Towns's creative and cultural sectors? A comparative analysis between traditional and modern organisations By Chan, Jin; Mohd Hashim, Intan Hashima; Khoo, Suet Leng; Lean, Hooi Hooi; Piterou, Athena
  3. The digital transformation of news media and the rise of disinformation and fake news By Bertin Martens; Luis Aguiar; Estrella Gomez Herrera; Frank Muller
  4. The Cultural Divide By Desmet, Klaus; Wacziarg, Romain

  1. By: Gaenssle, Sophia; Budzinski, Oliver; Astakhova, Daria
    Abstract: This paper empirically examines various factors influencing box office success of international movies in Russia between 2012 and 2016. Three groups of success factors are distinguished: distribution related (e.g. budget, franchise), brand and star effects (e.g. top actors or directors), and information sources (e.g. critics and audience rating). We extend the literature by applying novel concepts such as Google-hits as indicator for electronic word of mouth. Moreover, we add novel region-specific variables like seasonality, time span between the world and local release, attendance of international stars at Russian movie premieres and title adaptation into the Russian language. The results indicate that budget, franchise, electronic word of mouth through the internet and audience ratings exert a significantly positive influence on Russian box office success. Whereas, we find no evidence of star effects in our sample and significantly negative effects for international critics, and, interestingly, the adaption of movie titles
    Keywords: motion picture economics,movies,entertainment,box office success,Russia
    JEL: L10 L82
    Date: 2018
  2. By: Chan, Jin; Mohd Hashim, Intan Hashima; Khoo, Suet Leng; Lean, Hooi Hooi; Piterou, Athena
    Abstract: George Town World Heritage Site in Penang, Malaysia is well-endowed with creative and cultural resources, and has recently witnessed a rise in relevant activities. This study examines how 'innovation culture' is inculcated and embedded within two local organisations with distinct approaches to innovation. We adapted the measurements of entrepreneurship orientation constructs (innovativeness, risk-taking, pro-activeness), and conducted semi-structured interviews and archival study on the organisations and their networks. We documented the linkages in their value chains to understand the resulting social networks and whether such network fosters the incubation of an innovation cluster for the local creative and cultural sectors.
    Keywords: Innovativeness; World Heritage; Social Network; Cluster; Ecosystem
    Date: 2018–01–15
  3. By: Bertin Martens (European Commission – JRC - IPTS); Luis Aguiar (European Commission – JRC - IPTS); Estrella Gomez Herrera (European Commission – JRC - IPTS); Frank Muller (European Commission – JRC - IPTS)
    Abstract: This report contains an overview of the relevant economic research literature on the digital transformation of news markets and the impact on the quality of news. It compares various definitions of fake news, including false news and other types of disinformation and finds that there is no consensus on this. It presents some survey data on consumer trust and quality perceptions of various sources of online news that indicate relatively high trust in legacy printed and broadcasted news publishers and lower trust in algorithm-driven news distribution channels such as aggregators and social media. Still, two thirds of consumers access news via these channels. More analytical empirical evidence on the online consumption of genuine and fake news shows that strong newspaper brands continue to attract large audiences from across the political spectrum for direct access to newspaper websites. Real news consumption on these sites dwarfs fake news consumption. Fake news travels faster and further on social media sites. Algorithm-driven news distribution platforms have reduced market entry costs and widened the market reach for news publishers and readers. At the same time, they separate the role of content editors and curators of news distribution. The latter becomes algorithm-driven, often with a view to maximize traffic and advertising revenue. That weakens the role of trusted editors as quality intermediaries and facilitates the distribution of false and fake news content. It might lead to news market failures. News distribution platforms have recently become aware of the need to correct for these potential failures. Non-regulatory initiatives such as fact-checking, enhanced media literacy and news media codes of conduct can also contribute.
    Keywords: fake news, disinformation, media industries, online news, multi-sided markets, news aggregators, social media
    Date: 2018–05
  4. By: Desmet, Klaus; Wacziarg, Romain
    Abstract: This paper conducts a systematic quantitative study of cultural convergence and divergence in the United States over time. Using the General Social Survey (1972-2016), we assess whether cultural values have grown more or less heterogeneous, both overall and between groups. Groups are defined according to 11 identity cleavages such as gender, religion, ethnic origin, family income quintiles, geographic region, education levels, etc. We find some evidence of greater overall heterogeneity after 1993 when averaging over all available values, yet on many issues heterogeneity changes little. The level of between-group heterogeneity is extremely small: the United States is very pluralistic in terms of cultural attitudes and values, but this diversity is not primarily the result of cultural divides between groups. On average across cleavages and values, we find evidence of falling between-group heterogeneity from 1972 to the late 1990s, and growing divides thereafter. We interpret these findings in light of a model of cultural change where intergenerational transmission and forces of social influence determine the distribution of cultural traits in society.
    Keywords: between-group heterogeneity; cultural convergence; cultural divide; Cultural Evolution; cultural heterogeneity; General Social Survey; United States
    JEL: D70 Z1
    Date: 2018–05

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