nep-cul New Economics Papers
on Cultural Economics
Issue of 2021‒08‒09
nine papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale

  1. Pricing Art and the Art of Pricing : On Returns and Risk in Art Auction Markets By Li, Yuexin; Ma, X.; Renneboog, Luc
  2. Attention economics of Instagram stars: #instafame and sex sells? By Gänßle, Sophia
  3. Veneto: A manufacturing region with a cultural and creative edge By Pierluigi Sacco
  4. The Ultimate Coasian Commitment: Estimating and Explaining Artist-Specific Death Effects By Heinrich Ursprung; Katarina Zigova
  5. How big is home advantage at the Olympic Games? By Carl Singleton; J. James Reade; Johan Rewilak; Dominik Schreyer
  6. Experts, Information, Reviews, and Coordination: Evidence on How Literary Prizes Affect Sales By Nicolas Lagios; Pierre-Guillaume Méon
  7. Economia criativa brasileira no século XXI e os efeitos da pandemia: análise crítica de uma trajetória By Ana Flávia Machado; Rodrigo Cavalcante Michel; Alice Demattos Guimarães; Gabriel Vaz de Melo
  8. Fake News Acceptance by Demographics and Culture On Social Media By Sheikh, Muhammad Ammad; Mumtaz, Talha; Sohail, Nabeel; Ahmed, Bilal; Noor, Zain
  9. Making music with bayesvl By Ho, Manh-Toan

  1. By: Li, Yuexin (Tilburg University, Center For Economic Research); Ma, X. (Tilburg University, Center For Economic Research); Renneboog, Luc (Tilburg University, Center For Economic Research)
    Keywords: auction; art investment; alternative investments; cultural economics; hedonic pricing model; repeat sales model; portfolio optimization
    Date: 2021
  2. By: Gänßle, Sophia
    Abstract: Social media stars create stardom with uploads on social media pages like YouTube, TikTok or Instagram. One of the most popular platforms, especially designed to upload picture contents, is the service "Instagram" owned by Facebook. The growing social, cultural and economic power of social media star phenomenon raises the question about key drivers of success. Does body exposure drive Instagram success? Is there a difference between male and female content in this regard? This paper empirically analyses 500 top Instagram stars within the categories (1) fashion and beauty, (2) fitness and sports, (3) music, (4) photo and arts, (5) food and vegan. The unbalanced panel data set consists of 100 stars within each category over an observation period of five months. The data provides information on popularity measurements, such as subscribers, likes and comments, and most importantly, price estimates per post. Since influencers are not paid by the platform, but mainly by advertisers for promotion of their products, the estimated price per upload combined with the posting frequency serve as a valid proxy for weekly revenue and economic success. Mean comparison tests show that accounts with focus on female accounts have a significantly higher degree in body exposure, while the price per picture is higher for male content. Weekly revenues do not significantly diverge. Furthermore, using panel regressions, I estimate the effect of body exposure and sex on advertising revenue. The results show that body exposure has a positive effect, whereas the sex has no significant influence in the regression estimations. Eventually, this raises the question of a gender pay gap in social media.
    Keywords: cultural and creative industries,attention economics,superstar theory,social media stars,influencers,Instagram,gender pay gap
    Date: 2021
  3. By: Pierluigi Sacco
    Abstract: The COVID-19 crisis has provided an opportunity to rethink the Veneto Region’s economic strategy. This paper examines the links between cultural and creative sectors and the regional manufacturing economy of the Veneto Region in the North of Italy, highlighting the important role that cultural production, and in particular Venice, can play in the region’s post-pandemic recovery strategies.
    JEL: O31 R12 Z18
    Date: 2021–07–29
  4. By: Heinrich Ursprung; Katarina Zigova
    Abstract: To extract part of their monopoly rent, Coase (1972) famously claimed that durable goods monopolists require some institutional device that allows them to restrict their output stream in a credible manner. We empirically test this proposition by applying it to the production of visual art. The ultimate commitment device in artistic production is the artist’s death. As living artists cannot commit to a pattern of restrained production, the prices of artwork increase when the artist dies. We identify with the help of a toy model the drivers of this so-called death effect and estimate individual death effects of a sample of famous visual artists who died between 1985 and 2011. Using data from art auctions that took place in a narrow bandwidth around the artists’ death, we apply several variations of the classical regression discontinuity design. The heterogeneity in death effects across artists turns out to be substantial. Up to 40% of the variation can be explained by age and reputation at death.
    Keywords: Coase conjecture; Art auction prices; Death effect; Reputation; Regression discontinuity
    JEL: C21 L12 Z11
    Date: 2021–07–29
  5. By: Carl Singleton (Department of Economics, University of Reading); J. James Reade (Department of Economics, University of Reading); Johan Rewilak (Department of Economics, Finance and Entrepreneurship, Aston University); Dominik Schreyer (Wissenschaftliche Hochschule für Unternehmensführung (WHU))
    Abstract: We revisit the magnitude of home advantage at the Summer and Winter Olympic Games, looking back all the way to Athens in 1896. By comparing a host country’s success with their performances in previous and subsequent games, we find that home advantage has declined over time as participation and the diversity of competition have increased. Hosts of the Summer Olympics between 1988 and 2016 enjoyed a two-percentage-point boost in their shares of medals and finalists, compared with their performances overseas, in both men's and women's events. In this same contemporary period, the home advantage effect at the Winter Olympics was around fifty percent larger in men's events but non-existent in women's events. We also find evidence of significant performance spill overs on the previous and next Olympiads for countries when they hosted the Summer Games.
    Keywords: Attendance, Gender economics, Home bias, Major sport events, Olympic Games, Referee bias, Sports economics
    JEL: D91 L83 Z2
    Date: 2021–07–23
  6. By: Nicolas Lagios; Pierre-Guillaume Méon
    Abstract: We study the causal effect of literary awards on book sales, using France's most prestigious prize, the Goncourt. For this, we implement a regression discontinuity design, taking advantage of the fact that a committee of experts gives the prize to the book receiving the most votes. We observe that the Goncourt increases sales by 350 percent and that this effect is larger for books that sold fewer copies before the award. Additional results show that the prize results in more reviews on Amazon but increases the probability that they are negative. Finally, we report that the effect on sales is partly driven by an increase in word of mouth. These findings are consistent with a model where the Goncourt provides information on the existence of a book and where consumers use the prize as a quality signal and a coordination device but, as a result, read books that are too far from their tastes. This interpretation is backed by the finding that, despite its positive effect on sales, the Goncourt des Lycéens, a prize based on the same list of books as the Goncourt but awarded by a group of high-school students whose tastes are arguably doser to the public's than to those of experts, has no effect on the sentiment of reviews.
    Keywords: Awards; Literary prizes; Sales; Experts
    JEL: Z11 L15 L82 D12
    Date: 2021–07–27
  7. By: Ana Flávia Machado (CEDEPLAR/UFMG); Rodrigo Cavalcante Michel (CEDEPLAR/UFMG); Alice Demattos Guimarães (HVL/CrowdCul project); Gabriel Vaz de Melo (CEDEPLAR/UFMG)
    Abstract: Measuring the impact of the creative economy and its performance over time is a challenge, having seen its diversity in terms of products, forms of organization, spatial distribution and, above all, the difference in its definitions, dominant theories, and concepts. This paper aims to analyze the structure and evolution of the creative economy in Brazil from 2012 to 2021, in national terms, in regions and sectors, based on data on occupation, employment and income and exports. For this purpose, the IBGE's (Brazilian Institute of Geography and Statistics) National Continuous Household Sample Survey (PNAD-C), the Annual Social Information Report from the Ministry of Economy (RAIS) and data on international trade, also from the Ministry of Economy, are the main sources. Empirical findings on the evolution of the composition of enterprises and the degree of informality of the employed in Brazil in the 2000s are evidence of this inequality. Although activities such as advertising have been growing both in number of companies and occupation, and the "architecture and design" segment is the one that most absorbs formal and informal workers, there is a decrease in those employed in "audiovisual and music" as well as "editing and print". Moreover, information on foreign trade and the labour world in the pandemic period, 2020 and 2021 in Brazil, reflect the perverse effects of the health crisis itself, but, even further, the impacts of an absent State in fostering and encouraging culture and the arts. In addition to the loss of jobs, there was an increase in informality and income concentration, with the Northeast region being the most affected.
    Keywords: Culture, Creative Economy, Covid -19, Brazil
    JEL: Z11 R12
    Date: 2021–07
  8. By: Sheikh, Muhammad Ammad; Mumtaz, Talha; Sohail, Nabeel; Ahmed, Bilal; Noor, Zain
    Abstract: The objective for this research to find the effects of sub dimension of culture which is masculinity/femininity, individualism/collectivism, power distance and uncertainty avoidance but comprehensibility is a mediator so in which it effects social media usage. In our research the 4 sub dimension of culture, comprehensibility, fake news intension to social media usage and social media usage is an independent variable but on the other hand fake news and it all social media apps like Facebook, Instagram, Snapchat and WhatsApp which is a dependent variable. For this research, the data is collected from around 200 students in general from Karachi. The target population for this research are the Facebook and all social media users specifically in Karachi. The sampling technique that we chose is simple random probability design. PLS-SEM is the statistical technique used in our conducting research. The instrument used in this research is Questionnaire to collect data from the target audience. The findings of the research indicated that fake news intension to social media usage have a significant positive impact on social media usage. Similarly, comprehensibility has significant positive effect on fake news intension to social media usage. But individualism/collectivism has negative insignificant effect on comprehensibility. Power distance has negative insignificant effect on comprehensibility. Comprehensibility toward the sub dimension of culture which include masculinity/femininity and uncertainty avoidance has a significant positive effect on the sub dimension of culture. This study will help the society, senior management stakeholders, and policymakers in the country when it comes to the propagation of fake news on social media usage.
    Keywords: Masculinity/femininity, Individualism/collectivism, power distance, uncertainty avoidance, comprehensibility, fake news intension to social media usage, social media usage and fake news
    JEL: I3 I31 M1
    Date: 2021
  9. By: Ho, Manh-Toan (Thanh Tay University Hanoi)
    Abstract: So, Bản hòa tấu dữ liệu xã hội is finally published. This is officially my first book, so I feel like there should be something to mark the occasion.
    Date: 2021–07–19

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