nep-cul New Economics Papers
on Cultural Economics
Issue of 2020‒10‒26
six papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale

  1. The Value of Wi-Fi as Entertainment: An Application to Free Wi-Fi in City Buses of Korea By Kim, Yongwon; Kim, Yongkyu
  2. Upstream competition, exclusive content provision, and vertical integration in media markets By Kiho Yoon
  3. The economic impact of streaming beyond GDP By Edquist, Harald; Goodridge, Peter; Haskel, Jonathan
  4. Fading public control of audiovisual media By Henten, Anders; Tadayoni, Reza
  5. Empirical estimates of the impact of major sporting events on economic development By Kazakova, Maria (Казакова, Мария); Andronova, Olesya (Андронова, Олеся)
  6. A Theory of Strategic Uncertainty and Cultural Diversity By Willemien Kets; Alvaro Sandroni

  1. By: Kim, Yongwon; Kim, Yongkyu
    Abstract: As the usage of mobile data is significantly increasing, the demand for free public Wi-Fi also continues to grow. The ministry of science & ICT (MSIT) and some municipalities in Korea have been constructing free Wi-Fi networks on mass transportation for the benefit of users. In this study, we estimate the economic value of Wi-Fi for leisure based on demand function, which considers the time cost of using the internet. By using the 2016-2019 Korean Media Panel (KMP) data, we estimated the yearly consumer surplus of Wi-Fi and that of Wi-Fi in city buses. In this way, we showed the cost-benefit analysis could be carried out in public Wi-Fi projects.
    Keywords: Wi-Fi,Internet,Consumer Surplus,Panel Analysis
    Date: 2020
  2. By: Kiho Yoon (Department of Economics, Korea University 145 Anam-ro, Seongbuk-gu, Seoul, Korea 02841)
    Abstract: With a multilateral vertical contracting model, we examine the contractual form and the vertical structure in media markets. We analyze the trade of content by the Nash bargaining solution and the downstream competition by the Hotelling location model. We show that the possibility of exclusive contracts rises when the value of the premium content increases, the degree of horizontal differentiation in the downstream market decreases, the importance of advertising revenue decreases, and the relative bargaining power of upstream firm decreases. We also show that vertical separation (full vertical integration, respectively) is plausible when the relative bargaining power of upstream firm is strong (weak, respectively).
    Keywords: content provision, exclusive contract, vertical integration, media market, video programming.
    JEL: D43 L42 L82
    Date: 2020
  3. By: Edquist, Harald; Goodridge, Peter; Haskel, Jonathan
    Abstract: This paper finds that the shift from buying music as a physical product towards subscribing to music services implies a decrease of 85 percent in the price paid per song. We estimate that in 2019 the global quality adjusted value from streamed music was $76 billion compared to current revenues of $11.4 billion. Thus, the shift from consuming music in physical form towards subscribing to music services creates an enormous consumer surplus that is not recorded in GDP.
    Keywords: Streaming,price index,mobile broadband
    JEL: O31 O33 O34
    Date: 2020
  4. By: Henten, Anders; Tadayoni, Reza
    Date: 2020
  5. By: Kazakova, Maria (Казакова, Мария) (The Russian Presidential Academy of National Economy and Public Administration); Andronova, Olesya (Андронова, Олеся) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The impact of international sporting events, such as football championships or the Olympic Games, on economic growth is viewed by analysts and experts mainly in terms of short-term effects.More often they pay attention to how many tourists come to the Championship or the Olympics. The situation is much worse with the assessment of long-term results from international sporting events. However, it is the long-term effects that play a key role for catching-up economies in assessing the impact of organizing Championships and Olympics. The implementation of these events justifies itself if, thanks to them, export industries appear or develop in the economy, incl. tourism.This work is devoted to the econometric analysis of the consequences of the implementation of major sporting events for the economic development of countries. The first chapter provides an overview of foreign experience of such analysis; in the second chapter - an independent econometric study; in the conclusion, the calculation results are formulated.
    Keywords: development, tourism, sport economy
    Date: 2020–10
  6. By: Willemien Kets; Alvaro Sandroni
    Abstract: We identify a new mechanism through which cultural diversity affects economic out­comes, based on a model of culture as shared cognition. Under this view, cultural diversity matters because it increases strategic uncertainty. The model can help better understand a variety of disparate evidence, including why homogeneous societies can be more con­formist, why diverse societies may get stuck in a low-trust trap, why companies with a strong culture may fail to adopt superior work practices, and why autocratic rulers in diverse societies may overinvest in state capacity.
    Date: 2020–10–15

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