nep-cul New Economics Papers
on Cultural Economics
Issue of 2020‒03‒02
five papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale

  1. Impact of Regional Operational Programme on cultural heritage. The Romanian Case By Antonescu, Daniela
  2. An Economic Perspective to Independent Cinema By Arici, Cemali; Yucel, Eray
  3. Liberalizing Art: Evidence on the Impressionists at the end of the Paris Salon By Federico Etro; Silvia Marchesi; Elena Stepanova
  4. Estimating the Costs of Standardization: Evidence from the Movie Industry By El Hadi Caoui
  5. Recent or Free? An Experimental Study of the Motivations for Pirating Movies By Marc Bourreau; Marianne Lumeau; Francois Moreau; Jordana Viotto da Cruz

  1. By: Antonescu, Daniela
    Abstract: Cultural heritage is an important factor for people in a sensitive way, as they feel pride and ownership, which is not immediately and directly quantifiable. The value added of projects should therefore be sought in the impact that heritage sites have on the local, regional and national communities, and the opportunity to use the sites for education in heritage, culture, art, history. Preservation and promotion of cultural heritage is very specific and costly. The Structural Funds provided more than M€ 7.2 for territorial projects in Romania (period 2007-2013). The article aims to evaluate the impact of Structural and National Funds on cultural heritage, in Romania.
    Keywords: regional development, cultural heritage, Structural Funds, evaluation
    JEL: R0 R1 R12 R5 R53 R58
    Date: 2019–11–03
  2. By: Arici, Cemali; Yucel, Eray
    Abstract: This paper investigates the economic patterns related to independent cinema, which seems to be an understudied perspective in the literature. Using the classification in The Movie Database, we delve into basic features of movies and make comparisons of mainstream and independent cinema. Applying count regression models to alternative classifications of independent movies, we investigate the temporal patterns of independent movie creation and the linkages between independent and mainstream production volumes. We find that increasing number of independent films may be partially an outcome of increase in mainstream movie releases, showing a case of positive externality. In addition, increasing production budget for a movie has a positive impact on independent movie releases, in which the independent movies are more financed by the foundations such as United Artists over years.
    Keywords: Cinema; Movies; Independent movies; Economics of art; Count regressions
    JEL: C20 Z11
    Date: 2019–08–01
  3. By: Federico Etro; Silvia Marchesi; Elena Stepanova
    Abstract: We analyze the art market in Paris between the government-controlled Salon and the post-1880 system, when the Republican government liberalized art exhibitions. The jury of the old Salon decided on submissions with a bias in favor of conservative art of the academic insiders, erecting entry barriers against outsiders as the Impressionists. With a difference-in difference estimation, we provide evidence that the end of the government-controlled Salon contributed to start the price increase of the Impressionists relative to the insiders.
    Keywords: Art market, Liberalization, Market structure, Insider-Outsider, Hedonic regressions, Impressionism.
    JEL: C23 Z11
    Date: 2020–02
  4. By: El Hadi Caoui
    Abstract: This paper studies the decentralized adoption of a technology standard when network effects are present. If the new standard is incompatible with the current installed base, adoption may be inefficiently delayed. I quantify the magnitude of “excess inertia” in the switch of the movie distribution and exhibition industries from 35mm film to digital. I specify and estimate a dynamic game of digital hardware adoption by theaters and digital movies supply by distributors. Counterfactual simulations establish that excess inertia reduces surplus by 19% relative to the first-best adoption path; network externalities explain 29% of the surplus loss.
    Keywords: technology adoption, network effects, movie industry
    JEL: L82 L86 O33
    Date: 2019
  5. By: Marc Bourreau; Marianne Lumeau; Francois Moreau; Jordana Viotto da Cruz
    Abstract: The emergence of online providers aggregating illegal content from streaming platforms is rekindling the debate about online piracy. In the past, the discussion mainly focused on the impact of piracy in content industries and the effect of anti-piracy measures. But little is known about one crucial aspect of piracy: consumers’ motivations to use illegal channels. Yet, understanding consumers’ behavior could help practitioners and policymakers to allocate their resources better to fight online piracy. In this paper, we fill this gap by focusing on two main motives for the illegal consumption of online content: paying lower (zero) prices and having access to content that is not available in legal channels. To disentangle the role of each motivation in consumers’ choice, we ran a laboratory experiment with real consumption, a methodology that provides participants with incentives to reveal their true preferences about consumption while controlling for the choice environment and the consideration set. Our results suggest that consumers turn to illegal channels primarily to save on the price of content, and that they are less sensitive to the availability of content in legal and illegal channels. We discuss the implications of our findings for practitioners and policymakers.
    Keywords: piracy, digitization, movies, free, release windows, experiment
    Date: 2019

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