nep-cul New Economics Papers
on Cultural Economics
Issue of 2020‒06‒08
three papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale

  1. Innovation and Communication Media in Virtual Teams – An Experimental Study By Grözinger, Nicola; Irlenbusch, Bernd; Laske, Katharina; Schröder, Marina
  2. Cultural Diversity and Foreign Direct Investment By Wei Feng; Yanrui Wu; Yue Fu
  3. Digital piracy and the perception of price fairness. Evidence from a field experiment By Michal Krawczyk; Joanna Tyrowicz; Anna Kukla-Gryz

  1. By: Grözinger, Nicola (University of Cologne); Irlenbusch, Bernd (University of Cologne); Laske, Katharina (University of Cologne); Schröder, Marina (Hannan University)
    Abstract: In a novel real-effort setting, we experimentally study the effects of different communication media on creative performance in a collaborative tasks. We find that creative performance significantly decreases when group members communicate via chat instead of face-to-face. However, we find no significant difference between performances of groups that communicate via video conferences as compared to face-to-face. Thus, we provide evidence that barriers to creativity in virtual teams can be mitigated by real-time video conference communication.
    Keywords: creativity, communication, laboratory experiment, real-effort, complex problem solving, innovation
    JEL: C91 J30 M52 O30
    Date: 2020–05
  2. By: Wei Feng (School of Management and Economics, Southeast University, China); Yanrui Wu (Economics Discipline, Business School, University of Western Australia); Yue Fu (School of Management and Economics, Southeast University, China)
    Abstract: In this paper, we first propose a theoretical model and derive hypotheses about the relationship between cultural diversity and foreign direct investment (FDI). We then test these hypotheses through regression analysis of a dataset of 230 Chinese cities covering the period of 2000-2014. It is shown that cultural diversity and FDI absorption are negatively correlated. The main mechanism is that cultural diversity impedes human capital development and hence obstructs FDI absorption. However, this negative relationship disappears gradually over time. In addition, it is also shown that there are threshold and spatial spillover effects. This research not only enriches the theory of FDI location, but also has implications for FDI policy-making.
    Keywords: Cultural diversity, FDI absorption, Economic growth, China
    JEL: F21 F41 G18
    Date: 2020
  3. By: Michal Krawczyk (University of Warsaw; Group for Research in Applied Economics (GRAPE)); Joanna Tyrowicz (Group for Research in Applied Economics (GRAPE); University of Warsaw; Institut für Arbeitsrecht und Arbeitsbeziehungen in der Europäischen Union (IAAEU); Institute of Labor Economics (IZA)); Anna Kukla-Gryz (University of Warsaw)
    Abstract: We study a relationship between perceived price fairness and digital piracy. In a large-scale field experiment on customers of a leading ebook store we employ the Bayesian Truth Serum to elicit the information on acquiring books from unauthorized sources (often referred to as digital piracy). We provide empirical evidence in support of the conjecture that willingness to ‘pirate’ is associated with having experienced subjective overpricing. We propose and verify the relevance of two mechanisms behind this link: reactance theory and moral cleansing/licensing. The results indicate that pricing policy perceived as fair may reduce the scope for digital piracy.
    Keywords: unauthorized download; digital piracy; fair price; online sales; Bayesian Truth Serum
    JEL: P31 D24 O47
    Date: 2019

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