nep-cul New Economics Papers
on Cultural Economics
Issue of 2023‒11‒20
six papers chosen by
Roberto Zanola, Università degli Studi del Piemonte Orientale

  1. Using big data to measure cultural tourism in Europe with unprecedented precision By Borowiecki, Karol Jan; Pedersen, Maja U.; Mitchell, Sara Beth
  2. Revenue sharing at music streaming platforms By Gustavo Berganti\~nos; Juan D. Moreno-Ternero
  3. Has financial fair play changed European football? By Ariela Caglio; Sebastien Laffitte; Donato Masciandaro; Gianmarco Ottaviano
  4. Cultural Policies for migrant inclusion: a survey By Alessandra Venturini; Cristina Mosso; Andrea Ricci
  5. The Economics of Copyright in the Digital Age By Christian Peukert; Margaritha Windisch
  6. Exploiting Unfair Advantages: Investigating Opportunistic Trading in the NFT Market By Priyanka Bose; Dipanjan Das; Fabio Gritti; Nicola Ruaro; Christopher Kruegel; Giovanni Vigna

  1. By: Borowiecki, Karol Jan (Department of Economics); Pedersen, Maja U. (Department of Economics); Mitchell, Sara Beth (Department of Economics)
    Abstract: International tourism statistics are notorious for being over-aggregated, lacking information about the tourist, available with a lag, and often provided only at the annual level. In response to this, we suggest a unique complementary approach that is computer-science driven and relies on big data collected from a leading travel portal. The novel approach enables us to obtain a systematic, consistent, and reliable approximation for tourism flows, and this with unparalleled precision, frequency, and depth of information. Our approach delivers also an unprecedented list of all tourist attractions in a country, along with data on the popularity and quality of these attractions. We provide validity tests of the approach pursued and present one application of the data by illuminating the patterns and changes in travel flows in selected European destinations during and after the Covid-19 pandemic. This project opens a range of new research questions and possibilities for cultural economics, in particular related to cultural heritage and tourism.
    Keywords: Tourism; Cultural heritage; Big data; Covid-19
    JEL: J60 L83 O10 Z11 Z30
    Date: 2023–11–02
  2. By: Gustavo Berganti\~nos; Juan D. Moreno-Ternero
    Abstract: We study the problem of sharing the revenues raised from subscriptions to music streaming platforms among content providers. We provide direct, axiomatic and game-theoretical foundations for two focal (and somewhat polar) methods widely used in practice: pro-rata and user-centric. The former rewards artists proportionally to their number of total streams. With the latter, each user's subscription fee is proportionally divided among the artists streamed by that user. We also provide foundations for a family of methods compromising among the previous two, which addresses the rising concern in the music industry to explore new streaming models that better align the interests of artists, fans and streaming services.
    Date: 2023–10
  3. By: Ariela Caglio; Sebastien Laffitte; Donato Masciandaro; Gianmarco Ottaviano
    Abstract: In 2011 UEFA, the governing body of European football, introduced the Financial Fair Play Regulation (FFPR), consisting of a set of financial restraints to be met by clubs as a prerequisite for participation to its competitions. The aim of the FFPR was to introduce financial discipline into the clubs' decision-making processes, and ultimately protect the long-term viability of the European football industry. The reform was criticized because of possible unintended detrimental consequences. In particular, Peeters and Szymanski 2014 provided a model-based ex-ante simulation analysis showing that the reform would increase the profitability of clubs, but also tilt the competitive balance in favor of the top teams, thus reducing the interest of fans and investors as one of the main attractions in sports is precisely that the best team does not always win. Exploiting an original dataset between the seasons 2007-2008 and 2019-2020, we provide an ex-post econometric evaluation of the effects of the introduction of the FFPR revealing causal evidence that largely vindicates those ex-ante predictions.
    Keywords: accounting measurement, Financial Fair Play (FFP), financial sustainability, teama??s quality, competitive balance
    Date: 2023–10–11
  4. By: Alessandra Venturini; Cristina Mosso; Andrea Ricci
    Abstract: Integration of migrants is a priority in destination countries, but high unemployment and low wages and a strong segmentation still dominate the picture. The linguistic distance and the cultural distance are at the basis of the lack of soft skills which limit their inclusion. Cultural policies which have been considered redundant, are instead a priority for their positive effects on individuals and, in particular, on the foreigners. The present survey reviews the extensive research in the field using choir participation as pivotal activity. The results are measured with physiological and psychological indicators to understand the increase in self-esteem, self-efficacy and social inclusion which are needed for migrants to grasp the social capital of destination countries needed for integration. Even if the empirical studies are not scientifically convincing, i.e. small samples, no randomization, the numerosity and variety persuades about the positive effect.
    JEL: C23 J31 J61
    Date: 2023–10–30
  5. By: Christian Peukert; Margaritha Windisch
    Abstract: Intellectual property rights are fundamental to how economies organize innovation and steer the diffusion of knowledge. Copyright law, in particular, has developed constantly to keep up with emerging technologies and the interests of creators, consumers, and intermediaries of the different creative industries. We provide a synthesis of the literature on the law and economics of copyright in the digital age, with a particular focus on the available empirical evidence. First, we discuss the legal foundations of the copyright system and developments of length and scope throughout the era of digitization. Second, we review the literature on technological change with its opportunities and challenges for the stakeholders involved. We give special attention to empirical evidence on online copyright enforcement, changes in the supply of works due to digital technology, and the importance of creative re-use and new licensing and business models. We then set out avenues for further research identifying critical gaps in the literature regarding the scope of empirical copyright research, the effects of technology that enables algorithmic licensing, and copyright issues related to software, data and artificial intelligence.
    Keywords: copyright, digitization, technology, enforcement, licensing, business models, evidence
    JEL: K11 L82 L86
    Date: 2023
  6. By: Priyanka Bose; Dipanjan Das; Fabio Gritti; Nicola Ruaro; Christopher Kruegel; Giovanni Vigna
    Abstract: As cryptocurrency evolved, new financial instruments, such as lending and borrowing protocols, currency exchanges, fungible and non-fungible tokens (NFT), staking and mining protocols have emerged. A financial ecosystem built on top of a blockchain is supposed to be fair and transparent for each participating actor. Yet, there are sophisticated actors who turn their domain knowledge and market inefficiencies to their strategic advantage; thus extracting value from trades not accessible to others. This situation is further exacerbated by the fact that blockchain-based markets and decentralized finance (DeFi) instruments are mostly unregulated. Though a large body of work has already studied the unfairness of different aspects of DeFi and cryptocurrency trading, the economic intricacies of non-fungible token (NFT) trades necessitate further analysis and academic scrutiny. The trading volume of NFTs has skyrocketed in recent years. A single NFT trade worth over a million US dollars, or marketplaces making billions in revenue is not uncommon nowadays. While previous research indicated the presence of wrongdoings in the NFT market, to our knowledge, we are the first to study predatory trading practices, what we call opportunistic trading, in depth. Opportunistic traders are sophisticated actors who employ automated, high-frequency NFT trading strategies, which, oftentimes, are malicious, deceptive, or, at the very least, unfair. Such attackers weaponize their advanced technical knowledge and superior understanding of DeFi protocols to disrupt trades of unsuspecting users, and collect profits from economic situations that are inaccessible to ordinary users, in a "supposedly" fair market. In this paper, we explore three such broad classes of opportunistic strategies aiming to realize three distinct trading objectives, viz., acquire, instant profit generation, and loss minimization.
    Date: 2023–09

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