nep-cul New Economics Papers
on Cultural Economics
Issue of 2024‒02‒12
three papers chosen by
Roberto Zanola, Università degli Studi del Piemonte Orientale


  1. The pricing of digital art By Chen, Yi-Hsuan; Kräussl, Roman; Verwijmeren, Patrick
  2. Beyond the Battle of Narratives: Global soft power dynamics and the EU’s strategic approach on international cultural relations in the context of the emerging new world order By Tamas Szucs
  3. Netflix : disrupting the entertainment market with digital technologies, time and again By Solène Juteau

  1. By: Chen, Yi-Hsuan; Kräussl, Roman; Verwijmeren, Patrick
    Abstract: The intersection of recent advancements in generative artificial intelligence and blockchain technology has propelled digital art into the spotlight. Digital art pricing recognizes that owners derive utility beyond the artwork's inherent value. We incorporate the consumption utility associated with digital art and model the stochastic discount factor and risk premiums. Furthermore, we conduct a calibration analysis to analyze the effects of shifts in the real and digital economy. Higher returns are required in a digital market upswing due to increased exposure to systematic risk and digital art prices are especially responsive to fluctuations in business cycles within digital markets.
    Keywords: Digital art, conspicuous consumption, utility dividends, risk premium, valuation
    JEL: D8
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:zbw:cfswop:281200&r=cul
  2. By: Tamas Szucs
    Abstract: This paper argues that global soft power dynamics and the key actors’ behaviour in the battle ofnarratives positions the EU’s strategic approach on international cultural relations beyond this battle.Even though this approach originally counted on a well-functioning liberal democracy guided bythe rule of law, its open and inclusive nature complemented by its readiness to engage in dialogueand focus on the relational process aiming to build trust renders it a useful asset in the emergingmultipolar world.For the success of the EU approach collaborative partners are essential and their level of genuineengagement matters. At the positive end of the global spectrum are the democracies of the GlobalWest and Ukraine, while its war of aggression put Russia firmly on the opposite end. Russia`ssoft power has in fact (almost) always been reliant on the instrumentalisation of culture, clearlyattempting to disrupt the exisiting system of international relations and to reconstruct the Cold Warerabalance of power politics, dividing the world into spheres of influence. Russia’s soft coercionefforts are pivotal in its colonial war aimed at the destruction of not just the Ukrainian state, but alsoof Ukraine’s national and cultural identity, language and history.Ukraine’s response to this “weaponisation of cultural identity” was the direct opposite of Russia`sapproach. With active EU support, a full scale cultural renewal embraced democratic values, butressing Ukraine’s Western orientation and contributing to a wider societal transformation thatreinforces its anti-colonial resistance. China presents a conundrum. Its huge cultural potential andexceptional global significance make a strong case for the EU to develop a specific cultural relationsstrategy with the Asian superpower. On the other hand, China’s regular interference with culturalfreedom within Europe, its internal restrictions on artistic freedom, cultural and religious rights aswell as its increasing alliance with Russia on Ukraine and on disrupting the current rules based worldorder renders this difficult to envisage.Given such a scenario, combined with the importance of trust building, dialogue, co-creation, andseeking equity and fairness to address collective challenges in cultural relations, the Global Southholds the biggest potential for a reinforced implementation of the EU strategic approach. In the GlobalSouth, the EU is generally seen as an attractive and “capable actor, ” performing well in culture andsport in particular. It is already actively engaged in cultural co-creation and intercultural dialoguewith many countries, and supports initiatives to protect and promote cultural heritage, successfulEuropean Spaces of Culture projects have been rolling out on all continents (except Australia) since2019.My paper contends that a reinforced cultural relations approach, complemented by conventionalforms of cultural diplomacy and public diplomacy, should be used in a balanced manner. This wouldrequire targeted, concrete flagship projects in each domain with “differentiated implementation”, adjusted to specific needs with full involvement of local actors and stakeholders. This could improvecoordination among institutional actors. Such an approach also implies moving beyond the rigidapplication of conceptual approaches, as instead of competing with other methods, this new multifactorapproach would offer a scale of choices for concrete actions on the ground which would beadapted to local circumstances. Engaging in genuine dialogue, meaningful co-creation and mutuallybeneficial collaboration with local partners resonates well not just with the basic principles of thecultural relations approach. It also meets the clear message coming from the Global South in thewake of Russia`s war and their search for their own place in the new world power constellation. Thecountries of the Global South are diverse, have their own histories and identities, and are rejectinggeopolitical binaries in favour of multi-alignment and interest-based dialogues. The EU and its Member States, acting collectively, have by far the largest cultural network to engage effectively in third countries across the globe in terms of reinforced cultural relations approach, conventional forms of cultural diplomacy, and public diplomacy. The paradigm shift in international relations due to the Russian invasion and due to the way culture is used by other prominent global actors would fully justify continuing the implementation of the Joint Communication with high ambitions. This implementation should be based on a coherent vision in terms of the overall objectives of the EU`s international cultural relations approach, supported with strong political commitment, leadership, and personal involvement from the top level of EU institutions.
    Date: 2023–07
    URL: http://d.repec.org/n?u=RePEc:rsc:rsceui:2023/46&r=cul
  3. By: Solène Juteau (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie, LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université, GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur)
    Abstract: This case study focuses on Netflix's technological journey, emphasizing its role as a startup that revolutionized a sector through tech-savvy approaches. Up until 2023, Netflix continues to innovate. This exploration delves into how Netflix has evolved as a platform organization, leveraging advanced technologies to enhance user experience and business models. The case discusses Netflix's use of Cloud Computing and proposes elaboration on Artificial Intelligence and Blockchain technologies. This case will be particularly useful for graduate and postgraduate students or MBA students in courses on digital technologies and business perspectives.
    Keywords: Disruptive innovation, Digital platforms and ecosystems, Teaching cases, Long Tail, Artificial intelligence, Blockchain
    Date: 2024
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-04374918&r=cul

This nep-cul issue is ©2024 by Roberto Zanola. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at https://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.