Two games in town: a comparison of dealer and auction prices in contemporary visual arts markets

The article tests a couple of hypotheses relating to markets where demand is not taken as a given, but subject to sophisticated and encompassing price-building strategies. The study uses a data set that provides quoted dealer prices for medium-sized works of 100 leading visual artists from 1970 to 2004. These data are compared with auction price results for works by the same artists. The study reports significant discrepancies with respect to the relationship between the age of artists and prices paid for their works in the two markets, and with respect to general price developments in the two markets as measured by indices.

Economics of music publishing: copyright and the market

The paper argues that the paradigmatic shift from the sale of printed music to exploiting and managing musical rights that took place in music publishing during the early years of the twentieth century was due to the changing market rather than to changes in copyright law. On the one hand, copyright law was ineffectual in controlling piracy throughout the nineteenth century, and on the other hand, performing rights were ignored by music publishers for over 70 years; these points suggest that copyright was not the main reason behind the success of the industry. Rather than leading entrepreneurially (the current view of dynamism in the creative industries), publishers ‘followed the money’ and adapted their business models only when new streams of income from new forms of exploitation through sound recording, broadcasting and film became available as a result of exogenous technical progress. Publishers were locked-in to sales revenue as their business model, though when switching to the new business model of rights management took place, the costs seem not to have been greatly significant. The paper takes an historical approach to the development of music publishing viewed through the lens of present-day issues. The research has resonance for the transition from sales to licensing digital works that is taking place in the creative industries today and puts into perspective the relative significance of market forces and copyright law in the process.     

Music consumption at the dawn of the music industry: the rise of a cultural fad

This paper discusses the extent to which sociodemographic characteristics of consumers and their past consumption are less effective in explaining the decision of purchasing a cultural good than the characteristics of the product itself, which allow for imitative behaviors and are at the basis of distinction. While the former approaches are well documented in the literature, the latter refers to Bourdieu’s idea of objectified cultural capital, which has been revisited and empirically explored. Because the various causal effects interact with each other, this paper tests a theoretical model which matches individual characteristics of the consumer with the properties of the cultural product. Specifically, we discussed the emergence of a new version of a cultural good, which is able to broaden the dimension of the market by gaining rapid success in its audience. This diffusion pattern is a quite rare event, but disruptive for the market and extremely profitable for the producer. The authors label this occurrence a disruptive cultural fad and try to understand the determinants of its adoption. The hypotheses of the model are tested on a unique dataset of microdata of purchasing transactions in Milan in the early nineteenth century, when the music by Gioachino Rossini emerged as a disruptive cultural fad at the dawn of the music industry. Results show that key features of a successful disruptive cultural fad are the role of some specific patterns of personal past consumption, the capabilities of generating positive network externalities in the consumption, and, surprisingly, the lack of negative ones due to any possible hip or snob effect.     

Attitudes of the cultural tourist: a latent segmentation approach

As a result of globalization, the widespread use of ICTs, and advances in transport infrastructure, tourism destinations have to confront an increasingly competitive setting. When to this one adds the saturation of some of the original markets, the consolidation of traditional coastal destinations, and changes in client preferences and habits, it is not surprising that cultural tourism is being seen as having considerable growth potential over the next few years. In this context, policy-makers have been striving to better understand the cultural tourism market by attempting to segment their clients so as to adapt their offer to the client’s needs and leave the client satisfied with the experience. Unfortunately, most studies on cultural tourism segmentation have been purely psychographic. While this can help to explain attitudes, it fails to identify, access, and quantify segments, and is of little use for implementing specific strategies. The aim of the present work was to study the influence of socioeconomic and demographic variables (age, academic level, expenditure on tourism, inter alia) on the predisposition to choose cultural tourism (the “culturophile tourist”). To this end, we have developed a novel methodological approach and applied it to the results of a survey conducted by Andalusia’s Middle Towns Initiative. The approach uses the latent variables resulting from a latent class analysis to estimate log-linear models.     

On the complementarity between online and offline music consumption: the case of free streaming

From a representative survey of 2,000 individuals, we study whether consumption of music through streaming services, like Spotify or YouTube, is a substitute or a complement to physical music consumption modes, such as CDs and live music. Controlling for the taste for music, various socio-demographic characteristics and the usual determinants of music consumption either offline (radio, TV, friends/relatives) or online (online recommendations, social networks), our results show that free music streaming (where the consumer does not possess the music but only has access to it) has no significant effect on CD sales and affects positively live music attendance, but only for national or international artists who are more likely to be available on streaming services.     

Breaking up is hard to do: the resilience of the rock group as an organizational form for creating music

Though there is a long tradition of band members quitting the group or taking a hiatus, the rock group as an organization to produce music continues to be both popular and economically viable. The research question addressed in this paper is whether or not it is a good idea to quit or take a hiatus from the group. We begin with a discussion of the framework for understanding why groups are formed and why they may be difficult to keep together. We then discuss differences between groups in the decade of the 1960s versus today. We argue that there is something unique about the output of the group even with the changes in the structure of contracts, compensation, and consumer focus on the artist that explain the resilience of the rock band as an organizational form within which to create music. We compare the charting success of bands that have members leave the group with the charting success of the members who left the group. We identified the groups in five representative years: 1965, 1975, 1985, 1995, and 2005. We then analyzed the entire Billboard Hot 100 charting careers of those groups and the artists who quit those groups. Our main finding is that when charting success is divided equally among members, going solo pays off—there is a clear economic rationale because solo acts have greater average charting success than the original bands they started in. The other ensuing side projects: duos, collaborations, and other groups are not as lucrative as the original bands. These findings are valid for members of charting groups from each of the 5 years examined. Despite the difficulties in keeping a rock band together, there are fewer band breakups today and remaining with the group generally results in a longer and more productive charting career. Thus, the rock group remains an important organization for producing contemporary music. However, there remains a compelling incentive to go solo. Superstars may benefit from solo projects, but for the average, non-superstar group member, in many circumstances it is better for the band to stay together if the income is divided equally.     

Trust the artist versus trust the tale: performance implications of talent and self-marketing in folk music

Based on a unique dataset of artists that are active in the German market for folk music—the third largest music genre in terms of popularity and sales—I study what factors determine the artists’ success. Following Rosen (Am Econ Rev 71(5):845–858, 1981), I test if differences in artistic performance have a direct effect on financial rewards as regards physical and digital record sales (“direct superstar effect”). Following Adler (Handbook on the economics of art and culture. Elsevier, Amsterdam, 1985), I also study sales effects of a media presence of artists (“classical superstar effect”). Controlling for various contingency factors (e.g., record labels’ support, artists’ socio-demographics), I deal with an economic issue of general interest: Does it pay more to develop your skills in your core business to perfection or to maintain the current level of skills and invest in self-marketing; and do these effects apply to all folk artists alike? Rather contrary to studies on pop and rock genres, I find that higher ability increases artists’ revenues disproportionately, but simultaneously, openly competing for the recognition of one’s talent holds substantial economic risk. I also observe a positive effect of various types of media presence on financial rewards. However, these income determinants have different impacts on sales in physical versus in digital markets, and their effects vary across the success distribution from low- to top-selling artists as well.     

The editorial playlist as container technology: on Spotify and the logistical role of digital music packages

ABSTRACT

This article explores the role of editorial playlists in Spotify’s streaming economy. In particular, it approaches Spotify’s playlists as container technologies – i.e. technical solutions that assemble, preserve, and transport music objects and thereby uphold logistical operations within the music industry. Such an approach seeks to complement previous research concerning playlists, which has often analyzed their emotional and affective dimensions but paid less attention to how playlists enhance calculative, mathematical, and logistical retail flows within the online music economy. On the one hand, the article considers how playlists – like containers in general – materialize principles of modularization and automation in ways that enhance control and remote oversight. On the other hand, it discusses how the playlist is far from a perfected means of measurement and control, and sometimes acts as an unruly transport device. Ultimately, the article shows how the playlist format occupies an uneasy position between order and disorder within the digital music economy which has not yet been fully accounted for in the context of music-oriented media studies.     

The efficiency of German public theaters: a stochastic frontier analysis approach

In recent years the economic performance of public non-profit sectors such as cultural services has become an interesting economic issue. This is due to the high dependence of cultural institutions on public funding on the one hand and the increasing cost-pressure on public budgets on the other hand. In order to achieve an efficient, cost-minimizing resource allocation public authorities who decide on the distribution of public budgets need reliable performance indicators. Against this background, this paper analyzes the efficiency of German public theaters for the seasons 1991/1992–2005/2006. Using a stochastic frontier analysis approach, we test whether the assumption of cost-minimizing behavior is reliable in this sector. Moreover, several panel data models that differ in their ability to account for unobserved heterogeneity are applied to evaluate the impact of unobserved heterogeneity on the efficiency estimates. The results indicate that the cost-minimizing assumption cannot be maintained. Consequently, an efficiency analysis based on a cost function approach seems inappropriate in the case of German public theaters. Further, we find a considerable unobserved heterogeneity across the theaters, which causes a significant variation in the models’ efficiency estimates. This implies that failing to account for unobserved heterogeneity leads to biased efficiency values. Overall, our results suggest that there is still space for improvement in the employment of resources in the sector.     

汉唐皇权与道家方士--阅读陈垣教授编纂《道家金石略》的札记

本文试图探索汉唐几个具有典型意义的皇帝与道家方士的复杂关系 ,研究他们之间的契合和悖离、利用和反利用 ,以说明道家方士对中国古代皇权政治曾起过不容忽视的作用。方士们确以不同方式介入过不同时期的政局 ,而作为国家首脑的皇帝也确曾经主动延揽 ,吹捧其威望和能量 ,授予相当权柄 ,因而对国政起过很大的影响。研究汉唐时期政治 ,是绝不能将道家方士的活动排除在外的。本文也认为 ,皇帝们宠用方士 ,其动机和态度是存在着巨大差异的 ,即有出于对宗教信仰的执着和虔诚 ,但更多则是基于实际统治需要 ,或两者兼而有之 ,将信仰和治术结合起来 ,巧为运用。当然 ,对于被称为方士的历史人物也不能笼统而论 ,他们之间的学理素养、道术修炼和人生追求、辅政的主张 ,甚至人品和活动方式都有巨大的不同。对于皇权和方士有代表性的人物及其活动 ,都必应因时因人因皇具体分析 ,尽可能公平地评价     

Evaluating three decades of the European Capital of Culture programme: a difference-in-differences approach

We measure the regional impact of the European Capital of Culture programme using a difference-in-differences approach. We compare the regions of cities that hosted the event with the regions of cities that tried to host it but did not succeed. GDP per capita in hosting regions is 4.5 % higher compared to non-hosting regions during the event, and the effect persists more than 5 years after it. This result suggests that the economic dimension of the event is important and supports claims that the event serves as catalyst for urban regeneration and development.     

Air power and governmental support for scientific research: The approach to the Second World War

Conclusion The development of radar, jet propulsion, ballistic missiles and the atomic bomb during the Second World War established and made visible to an unprecedented degree governmentally supported and directed research and development. National survival was now seen to depend on the mobilisation of a country's talents and resources in science and technology for military purposes.Prior to the Second World War, the National Advisory Committee for Aeronautics had established its own role in research. It also established the legitimacy of governmental patronage for scientific research far beyond aeronautics. It was during that period that American politicians and the organs of public opinion became convinced and persuaded the electorate to think that science was indispensable for national security and well-being. A very great deal has been accomplished since then, but the credit for a pioneering role in the conduct of research with the financial support of the federal government must be given to the National Advisory Committee for Aeronautics.