Handbook of the Economics of Art and Culture - 1st Edition - ISBN: 9780444537768, 9780444537775

Handbook of the Economics of Art and Culture, Volume 2

1st Edition

Editor-in-Chiefs: Victor A. Ginsburgh David Throsby
eBook ISBN: 9780444537775
Hardcover ISBN: 9780444537768
Imprint: North Holland
Published Date: 26th September 2013
Page Count: 704
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Table of Contents

Introduction to the Series



Chapter 1. Introduction and Overview

1.1 Introduction

1.2 Value and Evaluation in Art and Culture

1.3 Demand, Consumption, and Investment

1.4 Innovation and Technological Change

1.5 Trade, Development, and Cultural Diversity

1.6 Broader Cultural Issues

1.7 Conclusion


PART I: Value and evaluation in art and culture

Chapter 2. Creative Genius in Literature, Music, and the Visual Arts


2.1 Introduction

2.2 Achieved Eminence

2.3 Individual Attributes

2.4 Lifespan Development

2.5 Social Processes

2.6 Conclusion


Chapter 3. Contemporary Experimental Aesthetics: Procedures and Findings


3.1 Introduction

3.2 An Artwork as Stimulus

3.3 Processes Underlying an Aesthetic Experience with Visual Art

3.4 The Viewer’s Contribution to an Aesthetic Experience

3.5 The Art Museum as Laboratory

3.6 Conclusion


Chapter 4. The Economic and Cultural Value of Paintings: Some Empirical Evidence


4.1 Introduction

4.2 Hypotheses

4.3 Data and Method

4.4 Results

4.5 Conclusion



Chapter 5. Values of Music


5.1 Introduction

5.2 Preliminary Distinctions

5.3 Music’s Value for Listener, Performer, And Composer

5.4 Manners of Musical Value

5.5 The Centrality of Music in Human Life

5.6 The Artistic Value of Music

5.7 Music’s Extra-Artistic Value

5.8 Music’s Aesthetic Value

5.9 Music’s Symbolic Value

5.10 Music’s Self-Affirmation Value

5.11 Music’s Social Value

5.12 Music’s Idiosyncratic Value

5.13 Music’s Mood-Enhancement Value

5.14 Music’s Accompaniment Value



Chapter 6. The Economics of Cultural Awards


6.1 Introduction

6.2 Prizes and Commerce

6.3 Prizes and Prestige

6.4 Conclusion


Chapter 7. The Use of Stated Preference Methods to Value Cultural Heritage


7.1 Introduction

7.2 Contingent Valuation Methods

7.3 Choice Experiments

7.4 Discrete Choice Experiment Models

7.5 Estimating Price from Choice Experiments

7.6 Enhancing Choice Experiment Models

7.7 Conclusions


PART II: Demand, consumption and investment

Chapter 8. Bestsellers and Blockbusters: Movies, Music, and Books


8.1 Introduction

8.2 Conceptual Models: Bestsellers and Blockbusters

8.3 Empirical Models: Bestsellers and Blockbusters

8.4 A Selective Survey of Empirical Findings

8.5 Conclusions: Some Interesting Issues for Further Research


Chapter 9. New Technologies and Cultural Consumption


9.1 Introduction

9.2 New Technology Changes Relative Price

9.3 New Technology Increases Variety

9.4 New Technology Induces New Preferences

9.5 Conclusion


Chapter 10. Investment in Visual Art: Evidence from International Transactions


10.1 Introduction

10.2 Testable Implications of International Art Sales

10.3 Real Exports of Paintings, Prints, and Sculptures

10.4 The Correlation Between Exports of Artworks, Consumer Goods, and Capital Goods

10.5 Art Trade and Permanent Income

10.6 Concluding Remarks




PART III: Innovation and technological change

Chapter 11. Cultural Innovation by Cultural Organizations


11.1 Introduction

11.2 The Determinants of Cultural Innovation by Cultural Organizations

11.3 Conclusion: Summary and Future Research


Chapter 12. Digitization, Copyright, and the Flow of New Music Products


12.1 Introduction

12.2 Framework

12.3 Effects on Demand and Their Documentation

12.4 Revenue Reduction and Cost Reduction

12.5 Quantity Evidence

12.6 Direct Quantity Evidence on the Service Flow of New Products

12.7 Explaining Increased Quality

12.8 Conclusion


Chapter 13. The Pricing of Art and the Art of Pricing: Pricing Styles in the Concert Industry


13.1 Introduction

13.2 The Live Event Industry: Facts, Literature Review, and Open Questions

13.3 Data and Summary Statistics

13.4 Price Discrimination: Measurement Issues

13.5 Price Discrimination at the Concert Level

13.6 Price Discrimination at the Artist Level

13.7 Identifying Artists’ Pricing Styles

13.8 Candidate Explanation for the Use of Price Discrimination

13.9 Exploitation of Market Power

13.10 Discussion

13.11 Overview and Future Research



Chapter 14. Media Ownership: Diversity Versus Efficiency in a Changing Technological Environment


14.1 Introduction

14.2 The Effects of Changing Technology

14.3 Concentrated Ownership and Economic Performance

14.4 Sociocultural Implications of Media Ownership

14.5 Media Ownership and Public Policy

14.6 Conclusions


PART IV: Trade, development, and cultural diversity

Chapter 15. Cultural Products in the International Trading System


15.1 Introduction

15.2 The Debate on Trade and Culture

15.3 International Trade in Cultural Goods and Services: a Survey of Theoretical Models and Empirical Studies

15.4 Should the Cultural Sector be Protected From International Integration? Normative Issues at the National Level

15.5 The Global Governance of Cultural Policies: Normative Issues at the International Level

15.6 Conclusions and Suggestions for Future Research



Chapter 16. Cultural Diversity, Copyright, and International Trade


16.1 Introduction

16.2 Cultural Diversity as a Concept in International Law?

16.3 The Concept of ‘Culture’

16.4 Copyright and Culture

16.5 Copyright as Part of the Trips Agreement

16.6 The Rest of the WTO

16.7 The Rights Clash?


Chapter 17. Trade and Cultural Diversity


17.1 Introduction

17.2 Theoretical Perspectives on International Trade and Cultural Diversity

17.3 Dynamic Cultural Transmission Models

17.4 Cultural Transmission and Competitive Economic Exchange

17.5 Factor Endowments, Trade, and Cultural Convergence

17.6 Group Consumption Externalities and Cultural Divergence

17.7 Increasing Returns, Market size effects, and Cultural Dynamics

17.8 Conclusions


Chapter 18. Cultural Diversity, Conflict, and Economic Development


18.1 Introduction

18.2 Measuring Ethnic Heterogeneity

18.3 Ethnic Diversity and Economic Outcomes

18.4 Heterogeneity and Conflict

18.5 Conclusions



Chapter 19. Culture, Linguistic Diversity, and Economics


19.1 Introduction

19.2 Linguistic Diversity and Fractionalization

19.3 Standardization

19.4 Disenfranchisement

19.5 Concluding Remarks



PART V: Broader cultural issues

Chapter 20. National Culture as Value Orientations: Consequences of Value Differences and Cultural Distance


20.1 Cultural Value Orientations to Characterize Societies

20.2 Mapping Cultural Differences Around the World

20.3 Comparison with the Hofstede and Inglehart Dimensions

20.4 Cultural Value Orientations and Economically Significant Variables

20.5 Conclusions




Chapter 21. Religion, Culture, and Development


21.1 Introduction

21.2 The Effect of Religion on Individual Behavior

21.3 The Role of Religion as a Response to Market or State Imperfections

21.4 Market Structure Models: The Effect of Competition on Religion

21.5 The State as a Strategic Actor: A Political Economics Approach

21.6 Conclusion


Chapter 22. Strategic Interactions Between Modern Law and Custom


22.1 Introduction

22.2 The Effect of Legal Reform on Customary Practices: An Overview of Economic Theories

22.3 Radical or Moderate Legal Reforms?

22.4 Two Insightful Case Studies

22.5 Conclusion




This volume emphasizes the economic aspects of art and culture, a relatively new field that poses inherent problems for economics, with its quantitative concepts and tools. Building bridges across disciplines such as management, art history, art philosophy, sociology, and law, editors Victor Ginsburgh and David Throsby assemble chapters that yield new perspectives on the supply and demand for artistic services, the contribution of the arts sector to the economy, and the roles that public policies play. With its focus on culture rather than the arts, Ginsburgh and Throsby bring new clarity and definition to this rapidly growing area.

Key Features

  • Presents coherent summaries of major research in art and culture, a field that is inherently difficult to characterize with finance tools and concepts
  • Offers a rigorous description that avoids common problems associated with art and culture scholarship
  • Makes details about the economics of art and culture accessible to scholars in fields outside economics


Graduate students and professors worldwide working in all subdisciplines of economics and finance.


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North Holland
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"This handbook is situated at the very cutting edge of modern economics: the place where rational thought and the idea of culture meet, mix and invite to new exciting theories. Add to this a deep concern with culture in the form of art, and you have a book that becomes extra interesting and important – to general readers, social scientists and good libraries." --Richard Swedberg, Cornell University

"This book is an actual encyclopedia of creativity in a disguise of collected papers. It is enjoyable like a product of creative art, valuable as a stimulus of mind and useful mentor in the process of our problem solving. It is worth reading."--Istvan Magyari-Beck, Corvinus University of Budapest and New York State University College at Buffalo, New York

"Victor Ginsburgh and David Throsby have prepared an edited volume that will quickly become the standard resource in the field of cultural economics.  This carefully constructed work provides both the breadth of subjects and detailed analysis necessary for teachers, researchers, practitioners, and students, with topics ranging from creative genius to the pricing of rock concerts."  --Kathryn Graddy, Brandeis University

About the Editor-in-Chiefs

Victor A. Ginsburgh Editor-in-Chief

Affiliations and Expertise

Université Libre de Bruxelles, Brussels, Belgium

David Throsby Editor-in-Chief

Affiliations and Expertise

Department of Economics, Macquarie University, Sydney, NSW, Australia