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Ich Bin Auch ein Lemming: Herding and Consumption Capital in Arts and Culture

Author

Listed:
  • Dominic Rohner
  • Anna Winestein
  • Bruno S. Frey

Abstract

Trends in arts and culture tend to be longer-lasting and less fragile than in other fields such as clothing design. Most herding models are not able to explain such stability, instead predicting informational cascades to be fragile and fads to be frequent. The present contribution is able to explain the hysterisis of trends in arts by incorporating the accumulation of consumption capital into a herding model. Further, the model is tested empirically by analyzing measures of relative and absolute concentration in the television business. It is concluded that by being exposed to art and culture people accumulate consumption capital for a particular style or artist and that this mechanism tends to make herding in arts stable over time.

Suggested Citation

  • Dominic Rohner & Anna Winestein & Bruno S. Frey, 2006. "Ich Bin Auch ein Lemming: Herding and Consumption Capital in Arts and Culture," IEW - Working Papers 270, Institute for Empirical Research in Economics - University of Zurich.
  • Handle: RePEc:zur:iewwpx:270
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    References listed on IDEAS

    as
    1. Dick Stanley & Judy Rogers & Sandra Smeltzer & Luc Perron, 2000. "Win, Place or Show: Gauging the Economic Success of the Renoir and Barnes Art Exhibits," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 24(3), pages 243-255, August.
    2. Marco Ottaviani & Giuseppe Moscarini & Lones Smith, 1998. "Social learning in a changing world," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 11(3), pages 657-665.
    3. Martin Feldstein, 1991. "The Economics of Art Museums," NBER Books, National Bureau of Economic Research, Inc, number feld91-1, April.
    4. Xavier Vives, 1993. "How Fast do Rational Agents Learn?," Review of Economic Studies, Oxford University Press, vol. 60(2), pages 329-347.
    5. Martin Feldstein, 1991. "Introduction to "The Economics of Art Museums"," NBER Chapters,in: The Economics of Art Museums, pages 1-12 National Bureau of Economic Research, Inc.
    6. Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992. "A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 992-1026, October.
    7. Anderson, Lisa R & Holt, Charles A, 1997. "Information Cascades in the Laboratory," American Economic Review, American Economic Association, vol. 87(5), pages 847-862, December.
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    13. Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
    14. Kennedy, Robert E, 2002. "Strategy Fads and Competitive Convergence: An Empirical Test for Herd Behavior in Prime-Time Television Programming," Journal of Industrial Economics, Wiley Blackwell, vol. 50(1), pages 57-84, March.
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Brown misses the point on celebrity
      by chris dillow in Stumbling and Mumbling on 2007-04-16 18:26:16

    More about this item

    Keywords

    Art; Culture; Herding; Consumption Capital; Concentration;

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature

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