nep-cul New Economics Papers
on Cultural Economics
Issue of 2023‒11‒06
five papers chosen by
Roberto Zanola, Università degli Studi del Piemonte Orientale

  1. Do Creative Industries Enhance Employment Growth? Regional Evidence from Colombia By Campi, Mercedes; Dueñas, Marco; Ciarli, Tommaso
  2. When Product Markets Become Collective Traps: The Case of Social Media By Leonardo Bursztyn; Benjamin R. Handel; Rafael Jimenez; Christopher Roth
  3. Do Search Engines Increase Concentration in Media Markets? By Joan Calzada; Nestor Duch-Brown; Ricard Gil
  4. Extensions of intellectual property in Media Industry: The Korean case By Jang, Chaeyun; Kim, Seongcheol
  5. Age, experience and team stability in the AFL : The recipe for success By Milne, Andrew

  1. By: Campi, Mercedes; Dueñas, Marco; Ciarli, Tommaso
    Abstract: Do creative industries have positive spillovers for the local economy in middle-income countries, for instance by attracting creative workers who benefit entrepreneurs and workers in other industries? Creative industries are considered highly innovative and productive and several studies in high-income countries have revealed such spillovers. However, the institutional and economic settings in middle-income countries may not be as conducive to them. Creative industries represented between 2.7 and 3.3 percent of Colombian employment in 2008 and 2017. Using granular employment data, we study their agglomeration patterns between 2008 and 2017. We nd agglomeration in the largest cities (Bogota, Medellin, and Cartagena) and in a few smaller cities. Using methodologies from prior studies yields a positive relationship between creative industry agglomeration and employment in non-creative services industries. However, after controlling for endogeneity using a shift-share instrumental variable approach, we nd, contrary to analyses of high-income countries, no signicant impact of an increase of creative industries employment on employment growth in other industries.
    Keywords: agglomerations;employment growth;Colombia
    JEL: Z18 O10 D62
    Date: 2022–02
  2. By: Leonardo Bursztyn; Benjamin R. Handel; Rafael Jimenez; Christopher Roth
    Abstract: Individuals might experience negative utility from not consuming a popular product. For example, being inactive on social media can lead to social exclusion or not owning luxury brands can be associated with having a low social status. We show that, in the presence of such spillovers to non-users, standard measures that take aggregate consumption as given fail to appropriately capture welfare. We propose a new methodology to measure welfare that accounts for these consumption spillovers, which we apply to estimate the consumer surplus of two popular social media platforms, TikTok and Instagram. In large-scale, incentivized experiments with college students, we show that, while the standard welfare measure suggests a large and positive surplus, our measure accounting for consumption spillovers indicates a negative surplus, with a large share of active users deriving negative utility. We also shed light on the drivers of consumption spillovers to non-users in the case of social media and show that, in this setting, the “fear of missing out” plays an important role. Our framework and estimates highlight the possibility of product market traps, where large shares of consumers are trapped in an inefficient equilibrium and would prefer the product not to exist.
    JEL: D62 D91
    Date: 2023–10
  3. By: Joan Calzada; Nestor Duch-Brown; Ricard Gil
    Abstract: Search engines are important access channels to news content of traditional newspapers with Google alone responsible for 35% of online visits to news outlets in the European Union. Yet, the effects of Google Search on market competition and information diversity have received scant attention. Using daily traffic data for 606 news outlets from 15 European countries, we analyze Google’s capacity to influence organic search visits by exploiting exogenous variation in news outlets’ indexation caused by nine core algorithm updates rolled out by Google between 2018 and 2020. We find Google core updates overall reduced the number of keywords (queries) for which news outlets occupy one of the top 10 organic search results positions. Therefore, given the positive impact that the number of top keywords have on traffic this led to the decrease in the overall number of news outlets’ visits. Finally, when studying the impact of Google core updates on media market concentration, we find the three “big” core updates identified in this period reduced market concentration by 1%, but this effect was offset by the rest of the updates. Similarly, in the context of Spain, we find the three “big” core updates reduced monthly keyword concentration by 4%.
    Keywords: search engines, market concentration Google, news sites, Europe
    JEL: D43 L50 L82 M31
    Date: 2023
  4. By: Jang, Chaeyun; Kim, Seongcheol
    Abstract: Content-based IP is the core engine to create a ripple effect in the media industry, distinctive from a prevalent distribution strategy of contents. Despite being the latecomer in the IP business, The Korean media industry recognizes the importance of a content-based IP extension strategy. Therefore, this case study aims to identify common factors of successful IP extension cases in Korea and propose a typology of successful IP extension paths. Utilizing the resource-based theory (RBV) and knowledge-based view (KBV) to redefine content based-IP as intangible resources owned by the media industry, this study proposes this theoretical framework for the case study of IP extension analysis. The case study of IP extensions in Korea, which emerged from the broadcasting, web comics and web novels, provides implications for media industries seeking content-based IP extension strategies.
    Keywords: IP(Intellectual property), Content-based IP, IP extension, Korean media industry, RBV (resource-based view), Case study
    Date: 2023
  5. By: Milne, Andrew (Monash University)
    Abstract: This paper analyses the importance of age, experience and team stability for on-field success for clubs in the Australian Football League (AFL). We use a fixed effects model to estimate our main results, with the key findings showing the importance of team composition and team stability. Team stability, representing social capital within the team, was shown to be a key factor in estimating home and away wins in the AFL over the years of 2010 to 2021. We find the importance of age as a limiting factor in a team’s capacity to generate home and away wins, whereby a minimum average age of a team is a necessary but not sufficient requirement for team success. Additionally, it was found the age bracket with the greatest impact on win percentage is players in their early twenties (21-25 years old). We find the most important component of a team’s composition is the level of match experience held by the team as a whole, with the proportion of players with greater than 100 matches experience contributing positively and significantly to team performance.
    Keywords: AFL ; Age ; Experience ; Team Stability ; Social Capital JEL classifications: Z20 ; Z21
    Date: 2023

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