nep-cul New Economics Papers
on Cultural Economics
Issue of 2019‒04‒22
six papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale

  1. Publicly funded cultural institutions. A comparative economic valuation study By Aleksandra Wisniewska; Mikolaj Czajkowski; Wiktor Budzinski
  2. Immigrant Artists: Enrichment or Displacement? By Karol J. Borowiecki; Kathryn Graddy
  3. Ce que le commun fait aux industries des biens symboliques By Valérian Guillier
  4. Art Auctions By Ashenfelter, Orley C; Graddy, Kathryn
  5. Home advantage in European international soccer: Which dimension of distance matters? By van Damme, Nils; Baert, Stijn
  6. Relationship between labeled network games and museum pass games By Encarnación Algaba; Sylvain Béal; Vito Fragnelli; Natividad Llorca; Joaquin Sánchez-Soriano

  1. By: Aleksandra Wisniewska (Department of Economics, University of Warsaw, Poland); Mikolaj Czajkowski (Department of Economics, University of Warsaw, Poland); Wiktor Budzinski (Department of Economics, University of Warsaw, Poland)
    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: 2019–04
  2. By: Karol J. Borowiecki (Department of Business and Economics, University of Southern Denmark, Odense, Denmark); Kathryn Graddy (Department of Economics, International Business School, Brandeis University)
    Abstract: In order to investigate the role of immigrant artists on the development of artistic clusters in U.S. cities, we use the U.S. Census and American Community Survey, collected every 10 years since 1850. We identify artists and art teachers, authors, musicians, and music teachers, actors and actresses, architects, and journalists, their geographical location and their status as a native or an immigrant. We look at the relative growth rate of the immigrant population in these occupations over a ten year period and how it affects the relative growth rate of native-born individuals in these artistic occupations. We find that cities that experienced immigrant artist inflows, also see a greater inflow of native artists by about 40%.
    Date: 2019–03
  3. By: Valérian Guillier (LABEX Arts-H2H - Le Laboratoire d'Excellence des Arts et Médiations Humaines, Scènes et savoirs - UP8 - Université Paris 8 Vincennes-Saint-Denis, UP8 - Université Paris 8 Vincennes-Saint-Denis)
    Abstract: Ce chapitre, issu d'une communication au colloque de Cerisy « L'alternative du commun », explore les dimensions de ce qui constitue un commun dans le domaine des biens symboliques. Nous explorons trois dimensions définitionnelles complémentaires des communs de la connaissance et de la culture en particulier, qui nous semblent correspondre aussi à des moments successifs dans la courte histoire des licences libres. Nous utilisons ces différentes dimensions pour analyser un exemple de bande dessinée libre et les interrogations que ce cas apparait soulever quant à la massification de tels modèles.
    Keywords: Industries culturelles et créatives,Libre Accès,Licence Creative Commons,Diffusion numérique,Communs de connaissance
    Date: 2019–02–27
  4. By: Ashenfelter, Orley C; Graddy, Kathryn
    Abstract: Works of art and culture are sold by many means. These include transactions between dealers and their customers, auctions with open outcry, internet auctions, and even, occasionally, sealed bid auctions. However, the standard procedure for establishing art valuations for the most expensive works is still most commonly the English auction, where prices ascend in open bidding. This paper describes how art auctions really work, along with the state of competition between auction houses. For expensive art, competition is dominated by the duopoly of Christie's and Sotheby's. The paper proceeds to describe various interesting features of art auctions, including the declining price anomaly, whether or not auctioneers provide accurate information, and anchoring effects in art auctions. The public auction system provides a valuable method for setting and determining values; it is probable that the inability of auctioneers to capture a significant part of the benefits of the information they produce leads to less use of the auction system than is optimal for society.
    Keywords: Art auctions
    JEL: D44 Z11
    Date: 2019–04
  5. By: van Damme, Nils; Baert, Stijn
    Abstract: The authors investigate whether the home advantage in soccer differs by various dimensions of distance between the (regions of the) home and away teams: geographical distance, climatic differences, cultural distance, and disparities in economic prosperity. To this end, they analyse 2,012 recent matches played in the UEFA Champions League and UEFA Europa League. The authors find that when the home team plays at a higher altitude, they benefit substantially more from their home advantage. Every 100 meters of altitude difference is associated with an increase in expected probability to win the match, as the home team, by 1.1 percentage points.
    Keywords: soccer,home advantage,cultural distance,UEFA Champions League,UEFA Europa League
    JEL: L83 J44 Z00
    Date: 2019
  6. By: Encarnación Algaba (Department of Applied Mathematics II and IMUS. University of Sevilla); Sylvain Béal (Université de Bourgogne Franche-Comté, CRESE); Vito Fragnelli (Department of Science and Innovative Technologies. University of Eastern Piedmont); Natividad Llorca (Research Institute CIO and Department of Statistics, Mathematics and Computer Science. University Miguel Hernández of Elche); Joaquin Sánchez-Soriano (Research Institute CIO and Department of Statistics, Mathematics and Computer Science. University Miguel Hernández of Elche)
    Abstract: We study the relationship between two cooperative games which arise from very different situations. On the one hand, the labeled network game which is defined to study how to allocate a certain flow in a network among agents that control different parts of the network. On the other hand, the museum pass game which is defined to analyze how to distribute the profit obtained from the use of passes which provide visitors unlimited access to the collaborating museums. We establish that both problems are related in the sense that a museum pass game can be written as a labeled network game and some labeled network games can be written as museum pass games.
    Date: 2019–04

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