The Local and the Global: Hokusai's Great Wave in Contemporary Product Design

This article examines the impact and significance of Hokusai’s so-called The Great Wave in contemporary product promotion and design. Arguably Japan’s first global brand, this influential 19th-century woodcut has been widely adopted to style and advertise a wide range of merchandise, most of it neither manufactured in Japan nor primarily dependent on the commodification of the Japanese aesthetic or locale. Interpretation of the varied contexts in which the distinctive cresting wave appears challenges essentialising narratives that see the modern adoption of such traditional non-Western motifs as expressions of Japonisme or Orientalism. Taking an interdisciplinary approach that brings to bear design and global studies theory, Guth instead focuses on how this highly adaptive motif, with its connotations of being both nowhere and everywhere, serves to mediate between the local and the global. Despite the ubiquity of The Great Wave in the commercial realm, to date there have been no studies of its cross-cultural significance. To carry out this project, Guth conducted extensive research into the merchandise on offer in museum shops and online websites, and among global brands such as Patagonia that have made use of the motif. Guth also interviewed designers and users of the products to assess the rationale for the choice of this form of branding and the degree to which awareness of its origins influenced purchases. Guth was invited to present this new research on the global commercial impact of Hokusai’s The Great Wave at an international conference on ‘Hokusai in Context’ in Berlin in 2011. The conference paper and resulting published essay were developed to form a chapter in a book-length investigation into the global iconicity of Hokusai’s wave from its creation to the present day. The book, Hokusai’s Great Wave: Biography of a global icon, will be published by University of Hawai’i Press in 2014

Selling to Conspicuous Consumers: Pricing, Production, and Sourcing Decisions

Consumers often purchase goods that are “hard to find” to conspicuously display their exclusivity and social status. Firms that produce such conspicuously consumed goods such as designer apparel, fashion goods, jewelry, etc., often face challenges in making optimal pricing and production decisions. Such firms are confronted with precipitous trade-off between high sales volume and high margins, because of the highly uncertain market demand, strategic consumer behavior, and the display of conspicuous consumption. In this paper, we propose a model that addresses pricing and production decisions for a firm, using the rational expectations framework. We show that, in equilibrium, firms may offer high availability of goods despite the presence of conspicuous consumption. We show that scarcity strategies are harder to adopt as demand variability increases, and we provide conditions under which scarcity strategies could be successfully adopted to improve profits. Finally, to credibly commit to scarcity strategy, we show that firms can adopt sourcing strategies, such as sourcing from an expensive production location/supplier or using expensive raw materials

Free-Riding and Luxury Brands on the Internet

International audienceLuxury is a complex industrial activity whose products combine strong vertical differentiation and a meaning value for the consumer. Luxury offers experiences, the economy of which is based on signalling. This gives rise to intense intangible investment internalized by trademark law and vertical restraints in distribution. However, the extent of the added value and the power of externalities associated with communication generate many sources of free-riding.Using the tools of industrial economics, this article analyses how the digitization of information and transactions creates new forms of free-riding in relation to luxury brands. Identifying vertical disintegration as a major source of free-riding, it calls for improved internalization of the enforcement of trademark law by all players in the digital value chain

Seventeen Famous Economists Weigh in on Copyright: The Role of Theory, Empirics, and Network Effects

The case of Eldred v. Ashcroft, which sought to have the Copyright Term Extension Act (CTEA, aka Sonny Bono Copyright Act) declared unconstitutional, was recently decided by the Supreme Court. A remarkable group of seventeen economists including five Noble laureates, representing a wide spectrum of opinion in economics, submitted an amicus curie brief in support of Eldred. The economists condemned CTEA on the grounds that the revenues earned during the extension are so heavily discounted that they have almost no value, while the extended protection of aged works creates immediate monopoly deadweight losses and increases the costs of creating new derivative works. More important, we believe, than the particulars of this case, is the articulation of the economic issues involved in copyright extension. These issues are not fully developed in the brief, nor is the case as one sided as the Eldred economists claimed. First, private ownership of creative works may internalize potentially important externalities with respect to the use of existing works and the creation of derivative works. Second, the Eldred economists neglect the elasticity of the supply of creative works in their analysis, focusing instead solely on the benefits received by authors. Consequently, they may underestimate the potential for additional creativity, which confers benefits immediately. Third, the Eldred economists neglect certain features of copyright law, such as fair use, the distinction between idea and expression, and the parody exemption, which mitigate the costs of copyright. Finally, we present data that counters a common claim that copyright extension so far out in the future can have little effect on creativity. The small fraction of books that have the majority of commercial value when they are new appear to remain valuable for periods of time that are consistent with the expanded term of copyright under CTEA