Empirical Evidence of a Decline in Repertory Diversity among American Opera Companies 1991/92 to 1997/98

Using data published by Opera America, this paperexamines the aggregate repertory of U.S.companies by calculating the total numberof companies and productions at six dates; thenumber of 20th century operas produced; theDiMaggio–Stenberg Index of conformity; andthe Herfindahl index of concentration. It is shownthat opera is a growth industry, butchanges in the character of repertory over timesuggest that since the early 1990s U.S.companies have been shifting their programming towarda more popular, less demandingrepertory. Presumably, this is done to ward offfinancial pressure.     

The economics of music festivals

This paper attempts to explain the rapid growth in the number of classical music and opera festivals. Two secularly increasing demand factors — a rise in real disposable incomes and an increased amount of time and money devoted to holidays — are well met by the supply of music festivals which almost perfectly combine culture and holidays. On the supply side, festivals may profit from low marginal cost of production factors and are considered as an effort to avoid restrictions from government regulations and trade unions.     

Patronage and Market in the Creation of Opera Before the Institution of Intellectual Property

Have different methods of financing the performing arts had an effect on thequality or diversity of thestock of works to be performed? This paper contrasts experience in the HolyRoman Empire and Italyfrom the mid-eighteenth to the mid-nineteenth century when copyright lawsbegan to play a major rolein the economics of composition. The period 1751–1790 strongly confirmshypotheses that patron-drivenopera would be expected to be qualitatively superior to market-driven opera. Italian experience from1810–1840, however, suggests that this result cannot be generalized.     

The appropriate extent of intellectual property rights in art

The paper examines whether intellectual property rights in art should be extended to the entire world. In earlier papers, the economics of patent rights have been examined and the argument made that world welfare is likely to fall if patent rights are extended to the entire world. This argument is recapitulated here with special attention to the assumptions that are needed for its validity. These assumptions are then reexamined in the context of markets for art to see whether the argument carries over. It is found that while most of the assumptions do carry over well enough to justify the argument, there are also certain circumstances that may require greater geographic extension of intellectual property rights in some cases.Paper prepared for a conference on The Economics of Intellectual Property Rights, International Center for Art Economics, University of Venice, October 6–8, 1994.     

How Relevant is Transaction Cost Economics to Inter-Firm Relationships in the Music Industry?

This paper applies the transaction cost framework to the organisation of product sourcing and development (PS&D) activities within the popular music industry. Two firm types characterise the industry and this particular set of activities; large multinational firms (`majors') and smaller regionally bound companies (`independents'). We find that the Transaction CostEconomies framework of Oliver Williamson (1985, 1999) provides only a partial explanation for the observed hybrid organisational structures established by the two firm types. A more sensitive model can be achieved by including a number of moderating variables drawn from the socially constructed and situationally dependent idiosyncrasies of the assets involved in the PS&D activities under consideration.     

The Determinants of Artistic Innovation: Bringing in the Role of Organizations

This article deals with the determinants of artistic innovation by arts organizations. First, we define artistic innovation. Second, we review the literature on its determinants, identifying some gaps. In particular, we observe that existing research mostly focuses on macro-environmental factors and tends to ignore the role of the organizations themselves. Thus, drawing from the organizational literature on innovation we formulate testable propositions that relate organizational factors to artistic innovation. We hope that our focus on organizational factors contributes to a more comprehensive framework on the determinants of artistic innovation in particular and programming in general.     

State Subsidies and Repertoire Conventionality in the Non-Profit English Theatre Sector: An Econometric Analysis

This paper examines the impact of financial and socio-economic factors on repertoire decisions of the grant-aided, non-profit theatre sector in England using cross-sectional regression analysis for the seasons 1996/97 to 1998/99. The dependent variable, a conventionality index, a variant of the DiMaggio/Stenberg conformity index, is calculated first. This shows a very considerable variation in repertoire conventionality, so measured, in the non-profit English theatre sector. A model is then constructed to assess the impact of the above-mentioned factors in determining variations in this index using a dataset hitherto not analysed in this way. The empirical results show that public subsidy, the size and the location of a theatre as well as the local average income have an impact on conventionality, which confirms existing empirical findings.     

How effective are international copyright conventions in the music industry?

The paper is concerned with the issue of whether international copyright legislation is effective in curbing audio software counterfeiting. The paper finds that copyright conventions have not been effective in reducing audio counterfeiting to comparatively low levels. This result holds even when allowances are made for the duration of copyright convention membership and the specificity of the articles of the convention. Economic development is found to be the main determinant of low counterfeit levels. This would tend to support anecdotal evidence which indicates that economic development is a necessary condition for the active recognition of audio property rights by the general public, judiciary and police. It is also consistent with a view that pirate audio software, being an inferior good, has a more buoyant market in less developed economies. From a policy perspective the research would seem to suggest that the extensive efforts and copious attention to detail by legal experts has made little impact on counterfeit activity and is secondary in importance to the socio-economic environment in which these laws are being applied.     

Is increased public spending for the preservation of historic monuments inevitable? The French case

There is a permanent expansion of the number of sites or properties listed as historic monuments in France. This expansion and the lack of productivity gains in the sector of restoration lead, within a stable economy, to an ever greater proportion of the national income being earmarked for upkeep and restoration. Hence the number of monuments to be subsidized grows. The policy does not include any mechanism of regulation. Ironically, laws governing this area have the effect of precipitating cost increases. Three possible alternatives are considered: appeals for sponsorship, merchandising, delisting.     

International trade in cultural goods: A cross-sectional analysis

Both industrialized and developing countries have historically applied various trade barriers to protect their domestic cultural industries. International trade statistics show that highly populated countries such as the U.S. have exerted a general pattern of cultural influence over the rest of the world through export of films, music, books, and periodicals. The following empirical study suggests that trade barriers effectively increase the net export of cultural products. While domestic market size seems to factor significantly into the trade for films and prercorded music, protectionism based on the economies of scale argument does not find widespread support among cultural industries.