nep-cul New Economics Papers
on Cultural Economics
Issue of 2018‒11‒12
six papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale

  1. Publicly funded cultural institutions – a comparative economic valuation study By Aleksandra Wiśniewska; Wiktor Budziński; Mikołaj Czajkowski
  2. The Three-Legged Stool of Value of Copyrighted Music: Hertzian Radio, SiriusXM, and Spotify (The Working Paper Version – v2) By Marcel Boyer
  3. Netflix and the Demand for Cinema Tickets - An Analysis for 19 European Countries By Parlow, Anton; Wagner, Sabrina
  4. The Competitive Market Value of Copyright in Music: A Digital Gordian Knot (The Working Paper Version – v2) By Marcel Boyer
  5. Institutions, Culture, and Wetland Values By Chaikumbung, Mayula; Doucouliagos, Chris; Scarborough, Helen
  6. Collaborative Innovation with External Partners in China: Cultural Similarity Effect By Chun-Yao Tseng

  1. By: Aleksandra Wiśniewska (University of Warsaw, Faculty of Economic Sciences); Wiktor Budziński (University of Warsaw, Faculty of Economic Sciences); Mikołaj Czajkowski (University of Warsaw, Faculty of Economic Sciences)
    Abstract: Cultural institutions are the main creators of cultural goods and services and are responsible for their accessibility; cultural institutions are also the main beneficiaries of public funds for culture. The aim of this study is to evaluate the division of public resources into different branches of culture that are rooted in political ‘adhocism’ and historical dependencies. Based on the observed visitations and their costs, a two-stage budgeting model is employed to investigate the change in consumer surplus related to the loss of access to the markets of cinemas, museums, and theatres in Warsaw, the capital city of Poland. The institutions vary in terms of public good characteristics and importance as public bodies, expressed in terms of subsidies. The inclusion of the entire markets of institutions helps to overcome the embedding effect, which affects many single-site valuations. It also enables a comparison between cultural sectors, which is rare in cultural economics. We find that people assign a positive value to the accessibility of all institutions and groups of institutions. However, the estimated value generated by each type of cultural institution is not aligned with the division of subsidies between these markets. For theatres, the total benefits exceed public support. Museums are found to deliver a lower level of benefits to society; the value they generate is outweighed by the subsidies they receive. Cinemas receive little direct support; however, they are valued twice as much as museums. The problem of cultural policy lies in the division of resources, which is much more equal relative to benefits attributed to groups of museums and theatres. At the same time the division between single institutions within all three branches of culture is unequal, with the significant exclusion of non-public institutions.
    Keywords: cultural policy, funding the arts, theatre, museum, cinema, non-market valuation
    JEL: Z1 Z11 Z18 D61
    Date: 2018
  2. By: Marcel Boyer
    Abstract: Pricing copyrighted works or assets has always been a difficult task given the information good character of such works. Doing it in the digital era is even more challenging. This paper proposes an approach to infer the competitive market value of copyrights in music from choices made by users namely the operators of Hertzian radio (HR), satellite radio (SiriusXM), and interactive music streaming services (Spotify). The inferred competitive values, which are obtained independently, fall in the same ballpark, although they need not be equal or even close as business models and cost structures differ significantly between those music delivery technologies. Nevertheless the estimated competitive market values of music copyrights clearly indicate that rightsholders are significantly shortchanged and poorly served by the current copyright pricing framework. Appendix A presents the data from which one can infer the value of music in HR. Appendix B presents an overview of the debate before the Copyright Board of Canada following the presentation of the model from which the value of music in HR can be inferred. La tarification des œuvres ou actifs protégées par le droit d'auteur a toujours été une tâche difficile étant donné le caractère ‘biens d’information’ de ces œuvres. Le faire à l'ère du numérique est encore plus difficile. Ce cahier propose d’inférer la valeur de marché à partir du comportement et des choix des utilisateurs, principalement les opérateurs de radio Hertzienne, de radio par satellite (SiriusXM) et de services de musique en ligne (Spotify). Les valeurs ainsi inférées séparément sont de niveaux comparables bien qu’il ne soit pas nécessaire qu’il en soit ainsi étant donné les différences importantes entre leurs modèles d’affaire et leurs structures de coûts. Les valeurs estimées montrent clairement que les ayants-droits sont significativement sous-compensés et donc mal servis par le système actuel de tarification des droits d’auteur. Deux appendices sur les données et le modèle utilisés pour inférer la valeur de la musique dans la radio commerciale au Canada complètent le cahier.
    Keywords: Copyright,Royalty rates,Hertzian radio,Satellite radio,SiriusXM,Online Music Services,Spotify, Droits d'auteur,Royautés,Radio Hertzienne,SiriusXM,Services de musique en ligne,Spotify
    JEL: H41 L38 L51 O34
    Date: 2018–10–12
  3. By: Parlow, Anton; Wagner, Sabrina
    Abstract: Netflix, as a potential competitor to the cinema industry, was introduced in various European markets between 2012 and 2014. We use movie ticket sales from 2000 to 2016 for 19 European countries to estimate a causal effect of Netflix entering these markets. We find that Netflix has a positive effect on ticket sales. Thus, the Netflix experience can complement the cinema experience. However, preliminary descriptive statistics show, that this effect reverse starting 2016, when Netflix released more high quality and localized content. It is likely, that this development will continue to a trend, and movie tickets sales will decrease further.
    Keywords: Movie theater industry, Netflix, VoD
    JEL: L82
    Date: 2018–10–29
  4. By: Marcel Boyer
    Abstract: Pricing copyrighted works or assets so that creators are competitively compensated has always been a difficult task given the information good character of such works. Doing it in the digital era is even more challenging. I consider Hertzian radio, satellite radio, and interactive music streaming services and I argue that annual competitive royalties in Hertzian radio should be increased from $100 million to $450 million. I further argue that this gap should not be filled by primary users alone but by a broader set of beneficiaries, including the general public and their government. La tarification des œuvres protégées par le droit d'auteur assurant aux créateurs une rémunération concurrentielle a toujours été une tâche difficile étant donné le caractère biens d’information de ces œuvres. Le faire à l'ère du numérique est encore plus difficile. Je considère la radio hertzienne, la radio par satellite, et les services de musique interactive et je prétends que les royautés dans la radio hertzienne devraient être augmentées de $100 à $450 million. Je prétends en outre que cet écart devrait être comblé non pas uniquement par les utilisateurs primaires, mais par un ensemble plus large de bénéficiaires, y compris le grand public et leur gouvernement.
    Keywords: Copyrights,Hertzian radio,SiriusXM,Music streaming services,Pandora,Spotify, Droits d'auteur,radio hertzienne,SiriusXM,services de musique en ligne,Pandora,Spotify
    JEL: D23 L38 O34 Z11
    Date: 2018–10–12
  5. By: Chaikumbung, Mayula (Kasetsart University); Doucouliagos, Chris (Deakin University); Scarborough, Helen (Deakin University)
    Abstract: Do institutions and culture affect environmental values? In this article we analyze 1,041 environmental valuations of 223 wetlands in 38 developing countries, to examine the effect of institutions and culture on environmental values. We assess three dimensions of institutional quality: economic freedom, democracy, and good governance. We also consider the impact of cultural differences. Possibly surprisingly, wetland values are lower in more market based economies and they are lower in cultures that are more indulgent and authoritarian. In contrast, improved government effectiveness increases wetland valuations. Understanding these important and varying effects of institutions and culture on wetland valuations is important for policy development and environmental preservation.
    Keywords: institutions, culture, wetlands, valuations, environmental preferences, meta-regression
    JEL: Q3 H4 O13 P48
    Date: 2018–09
  6. By: Chun-Yao Tseng (Tunghai University)
    Abstract: This study focuses on collaborative innovation in China ICT(Information and Communications Technology) industry. Although prior findings point out that collaborative innovations do facilitate innovation performance, there are some unresolved problems and one of which is the problem of ?collaborating with whom?. Is there the effect of cultural similarity in collaborative innovation. This paper aims to contribute to the literature of collaborative innovation by investigating into the effects of collaborative partners on innovation performance from the perspective of cultural similarity. Based on the analysis of patent and citation from the U.S. Patents and Trademark Office (USPTO) from 1985 to 2010, empirical results are shown the performance of collaborative innovation between China and foreign is significantly greater than that of domestic collaborative innovation in China. The performance of collaborative innovation between China and culturally similar country is significantly better than that between China assignees and culturally different country.
    Keywords: Collaborative Innovation; Cultural Similarity; External Partners; Innovation across Cultures.
    JEL: O30 O32 M14
    Date: 2018–07

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