Rational addiction and cultural goods: the case of the Italian theatregoer

This paper tests whether demand for theatre in Italy is consistent with the model of rational addiction presented in Becker and Murphy (J Polit Econ 96(4):675–700, 1988). Data from a novel 34-year panel on regional annual theatre attendance are used to estimate market demand. Four models are applied to investigate the demand function, and all of these also include per capita income and other control variables as regressors. The first two models are estimated to check whether theatregoers are myopically addicted to theatre. The results suggest that the theatre is an addictive good because past consumption (and prices) significantly raises the marginal utility of current consumption. The third model tests the rational addiction hypothesis, which assumes that future attendance also influences current attendance, whilst past and future prices influence current attendance only indirectly through their impact on past and future attendances. However, our most highly specified model, introducing past and future prices, demonstrates that Italian theatregoers are not myopic but fully rational as outlined in Becker and Murphy (1988). The results demonstrate that the rational addiction hypothesis is applicable not only to “harmful” addictions such as alcohol, cigarettes and drug consumption, but also to “beneficial” addictions, such as theatre attendance. This result has important policy implications because theatre is one of the most subsidised performing arts in Italy; if theatregoers are fully rational, policy makers can influence theatre attendance using alternative policy instruments (price and income), thereby reducing government expenditure on theatre subsidies.     

Frequency of museum attendance: motivation matters

Some recent empirical contributions have highlighted that tourists often go to museums yet appear to extract little utility from the experience. We argue that this is often the case with agents who visit museums only while on holiday and results from a temporary lack of substitute experience goods or compliance with a must-do list. If such agents behaved according to Stigler and Becker’s rational addiction theory, they would also visit museums while at home. However, most do not, which makes them constantly occasional consumers. We indirectly test for the presence of constantly occasional museum attendance by tourists, using data from a survey conducted in 2012 at Vittoriale, the most popular museum at Lake Garda, a renowned Italian tourist destination. By applying multiple correspondence analysis to a question on motivations to visit the museum, we obtain two dimensions of motivation: one based on a search for knowledge and the other based on a more recreational attitude. Identification of the latter is a new finding in itself. We include these dimensions as regressors in a model used to explain museum attendance. We find, as expected, that light consumption negatively affects attendance. We therefore argue that empirical analyses of museum attendance should not disregard light motivation as a possible driver.     

Artistic education matters: survival in the arts occupations

The literature of cultural economics generally finds that an artistic education has no significant impact on artists’ income and careers in the arts. In artists’ labor markets, indefinable features such as talent and artistic creativity apparently contribute more to success or higher rates of payment than education and training. In this article, we will readdress this question by looking at the artists’ survival in the arts occupations. We find it reasonable to expect than an artistic education can have a significant impact on artists’ careers because of the importance of technical skills, networks and signaling effects. We analyze the question by using a unique longitudinal dataset for five different groups of artists in Denmark, using the Cox model to apply survival functions and semi-parametric analysis. The results show, among other things, that an artistic education has a significant impact on artists’ careers in the arts, and we find important industry differences.     

Analysis of the consumption of artistic-cultural goods and services in Brazil

This work aims to evaluate the determinants of the consumption of artistic-cultural goods and services in Brazil, conceiving this consumption as an activity with positive effects on the consumer and on the society as a whole. Using the human capital approach, we estimate a model in which the expenditures on artistic-cultural goods and services depend on socio-economic, educational and socio-demographic characteristics of the head of the household, and on variables that indicate the location of the household. The results indicate that artistic-cultural expenditures are strongly determined by income and by the education of the consumer. Furthermore, the expenditure differs regionally, which may occur due to supply variations or historic-cultural distinctions.     

A discrete choice model of consumption of cultural goods: the case of music

In this article we present an empirical analysis of the ‘patterns of cultural choice’ in the musical domain in Italy. The main goal of the article is to verify whether musical tastes in Italy are diversified, with the presence of a group of ‘cultural omnivores’. Our study is based on the theoretical model of the demand for cultural goods proposed by Lévy-Garboua and Montmarquette (1996). In the empirical analysis we simultaneously evaluate the probability of choosing different musical genres. Through the specification of the set of alternatives into three groupings of musical genres —“only classical music”, “only popular music” and “all music”—we were able to detect the relative impact of several socio-economic characteristics on the probability of having “univorous” or “omnivorous” musical likings. In addition, our approach allows us to verify the existence of different patterns of music consumption by testing the significance of differences among the estimated coefficients of the probability functions related to the three groupings of musical genres. We find that age, gender and education are important predictors of an omnivorous taste.

Economics of cultural tourism: issues and perspectives

The special issue aims at exploring, with an economic perspective, the interconnections between cultural participation, in all its expressions, and tourism organization and patterns with the purpose of understanding economic effects, emerging trends and policy implications. The expanding notion of the cultural consumption of tourists makes the definition of cultural tourism increasingly elusive. Empirical investigations of the relationships between cultural participation and cultural heritage and tourism offer interesting hints in many directions. This introduction briefly overviews the premise of this special issue, the literature and the several perspectives taken by the included articles. Aside from their cultural topics—general, intangible or temporary—these essays all tackle some important economic dimensions of tourism. We encourage cultural economists to invest more in these fascinating areas as more than just intellectual tourists.     

Intellectual property rights and U.S. information goods exports: the role of imitation threat

Trade in information goods is particularly sensitive to the strength of intellectual property rights (IPR) and encounters an apparently different pattern of imitation threat compared with manufacturing trade, but the information goods trade–IPR nexus is less systematically investigated. This article analyzes whether and how U.S. information goods exports are sensitive to national differences in IPR protection and the degree of threat-of-imitation from the dynamic perspective. Employing the technique of instrumental variables for a dynamic panel model to consider the hysteretic effect and controlling the endogeneity problem, the empirical results show that the strength of the importing country’s IPR protection overall exhibits a trade-enhancing effect, supporting the standpoint that stronger IPR protection will induce more trade. Moreover, we adopt the piracy rate as a proxy for threat-of-imitation to examine its role on the information goods trade–IPR nexus. Empirical findings validate the prevalence of the market expansion effect wherever the degree of imitation threat of importing countries is high or low, because the technology level and production cost of reproduction are very low. It implies that the existing theory on threat-of-imitation may not apply to the information goods trade.

Analyzing repeat consumption of identical cultural goods: some exploratory evidence from moviegoing

This study offers a preliminary exploration of repeat consumption of identical cultural goods, specifically moviegoing. The term ‘identical’ in this study refers to cases where, for example, individuals view the same film at a movie theater, in a short time interval, on more than one occasion i.e. experiencing the cultural good in precisely the same format. It is not meant to embrace the case of individuals who, for example, view a particular film at a movie theater and then see it some time later in another format, such as via a DVD player. The repeat viewing phenomenon is discussed and then considered empirically. Films aimed predominantly at children attract the highest number of repeat views, while those aimed at an older audience attract significantly fewer repeat views. The profile of repeat viewers of the 10 films which attracted the greatest number of repeat viewers was subject to more detailed scrutiny. In general, repeat viewers tend to be younger but the gender balance differs markedly according to film content. An earlier version of this article was presented at the 3rd European Workshop on Applied Cultural Economics, University of Oviedo in Aviles, Spain 14–16 June 2007 and the 9th International Conference on Arts and Cultural Management (AIMAC), Fundación Universidad Empresa (ADEIT), Valencia, Spain 8–11 July 2007. We are grateful for comments received and the usual caveat applies.     

Universities and the public recognition of expertise

This article argues that new sites of knowledge production, increasingly cultivated by the mass media, are threatening the role of academics and universities as traditional sources of expertise. Drawing upon the conceptual categories of Pierre Bourdieu, the article suggests an alternative way of understanding this ‚crisis of legitimacy’.     

The sales effect of word of mouth: a model for creative goods and estimates for novels

Weekly sales of creative goods—like music records, movies, or books—usually peak shortly after release and then decline quickly. In many cases, however, they follow a hump-shaped pattern where sales increase for some time. A popular explanation for this phenomenon is word of mouth among a population of heterogeneous buyers, but previous studies typically assume buyer homogeneity or neglect word of mouth altogether. In this paper, I study a model of new-product diffusion with heterogeneous buyers that allows for a quantification of the sales effect of word of mouth. The model includes Christmas sales as a special case. All parameters have an intuitive interpretation. Simulation results suggest that the parameters are estimable for data that are not too volatile and that cover a sufficiently large part of a title’s life cycle. I estimate the model for four exemplary novels using scanner data on weekly sales.

Ownership,organization structure and public service provision: the case of museums

This article provides an empirical investigation of the effects of the ownership and organizational structure on the performance of cultural institutions. More specifically, we consider how museums are effective in their function of disseminating culture to audiences and contributing to the local development. By exploiting a unique data set based on the 2011 census of Italian museums, we develop performance indices of accessibility, visitors’ experience, web visibility and promotion of the local cultural context. Using count data models, we regress such measures on the type of organization. We distinguish between governmental museums, public museums whose administration is either outsourced or has financial autonomy and private museums. We control for the most salient characteristics of a museum, competition pressure and some proxies of potential audience. Our evidence shows that private museums, public museums with financial autonomy and outsourced museums outperform public museums run as sub-units of culture departments. This paper contributes to the cultural economics and public policy and administration literature by adding insights into the effect of outsourcing and administrative decentralization in the public cultural sector.     

Federal support of basic research: Some economic issues

Summary There is no necessary connection between leadership in basic science and leadership in the applications of science, because scientific progress is a cooperative endeavour and not a competitive game; indeed, there may be a conflict between basic research and applied science. The notion of a position of leadership; in science raises questions of what leadership consists in and what its value is to the nation. The two main arguments for government support of science are cultural-social, and economic. The cultural-social argument stresses scientific activity as a form of social consumption of wealth and raises the question of whether other uses of the resources employed would contribute more to the greatness of the society. The economic argument stresses basic scientific research as a form of investment for the future, and raises the questions of what the rate of return on such investment is and whether and to what extent government support is called for. Relevant economic research results bearing on this problem are scarce. Economic theory suggests that competition in the market will supply less than the optimal amount of basic research; but our society substantially supplements the market through private contributions to and government support of science, and the question is whether this supplementation is deficient or excessive. Here difficult problems arise, on which more economic research is needed; one of these concerns the relative merits of government and private support of science. The rule-of-thumb procedures generally recommended for determining the volume and allocation of government support to basic scientific research generally ignore these problems, and amount to endorsing the present level of government support or recommending that it be increased. Allocation of federal support of science should take account of the possibility of stimulating the economic development of poor regions of the country by locating scientific research facilities in them.