The economic analysis of product diversity

Product diversity is a long-debated issue in economics. We remind that mainly two questions have been given answers : (a) To which extent does the market provide diversity ? (b) Why should this diversity be promoted ? The first one stands out as the core of most articles on product diversity, whereas the second one is more evoked than really deepened. However, the economic analysis of product diversity stands out as a paradox. Actually, the definition of diversity itself has been somewhat forgotten. We try to give ways to overcome this absence so that product diversity can eventually be concretely assessed.Product diversity, theory of consumer choice, monopolistic competition.

Decreasing Copyright Enforcement Costs: The Scope of a Gradual Response

The digitization of copyrighted goods and the dematerialization of their distribution over the Internet have weakened copyright, a key institution of the creative industries. One factor affecting the value of copyright stems from the broadband roll-out, wherein copyright enforcement costs have become higher than the estimated benefits of copyright. This paper analyzes the causes of this situation and suggests how a graduated response to infringers may durably decrease copyright enforcement costs. Beginning with a review of the economic literature on copyright focusing on its industrial aspects, the study then analyzes how the consumers' impunity provides incentives to “free ride” on copyright all along the vertical distribution chain. This rapidly increases copyright enforcement costs. Next, the paper describes both the graduated response mechanism and the voluntary agreement which initiated this system in France. In conclusion, this study argues that increasing the cost of free-riding for the final consumer should lead to a decrease of copyright enforcement costs and, therefore, higher returns in the creative industries.Copyright, Creative industries, Regulation enforcement costs, Digitization, Graduated response.

The economic analysis of product diversity

URL des Cahiers : https://halshs.archives-ouvertes.fr/CAHIERS-MSECahiers de la Maison des Sciences Economiques 2005.83 - ISSN : 1624-0340Product diversity is a long-debated issue in economics. We remind that mainly two questions have been given answers: (a) To which extent does the market provide diversity? (b) Why should this diversity be promoted? The first one stands out as the core of most articles on product diversity, whereas the second one is more evoked than really deepened. However, the economic analysis of product diversity stands out as a paradox. Actually, the definition of diversity itself has been somewhat forgotten. We try to give ways to overcome this absence so that product diversity can eventually be concretely assessed.La question de la diversité de la production interpelle les économistes depuis au moins les premiers modèles de concurrence monopolistique. Nous rappelons que la théorie économique a principalement considéré deux aspects du problème : (a) Dans quelle mesure le marché fournit-il une production diversifiée ? (b) Pourquoi faut-il promouvoir cette diversité ? La première question surtout a intéressé la théorie économique, la seconde étant plus souvent évoquée que véritablement approfondie. Il demeure néanmoins un oubli problématique dans l'analyse économique de la diversité culturelle, celui de la définition même de la diversité culturelle. Nous cherchons ici à remédier à cette lacune, dans l'objectif plus général de fournir les outils permettant de mesurer la diversité de la production

Decreasing Copyright Enforcement Costs: The Scope of a Gradual Response

International audienceThe digitization of copyrighted goods and the dematerialization of their distribution over the Internet have weakened copyright, a key institution of the creative industries. One factor affecting the value of copyright stems from the broadband roll-out, wherein copyright enforcement costs have become higher than the estimated benefits of copyright. This paper analyzes the causes of this situation and suggests how a graduated response to infringers may durably decrease copyright enforcement costs. Beginning with a review of the economic literature on copyright focusing on its industrial aspects, the study then analyzes how the consumers' impunity provides incentives to “free ride” on copyright all along the vertical distribution chain. This rapidly increases copyright enforcement costs. Next, the paper describes both the graduated response mechanism and the voluntary agreement which initiated this system in France. In conclusion, this study argues that increasing the cost of free-riding for the final consumer should lead to a decrease of copyright enforcement costs and, therefore, higher returns in the creative industries

From Loyalty Points to Virtual Currencies: Expanding Loyalty Schemes for Mobile Platforms

Since the first loyalty program was introduced in the 1980s, technological innovation has changed the possibilities for such programs considerably. One significant change is the emergence of mobile and online platforms that started to deploy loyalty schemes aiming at both sides of the market, namely customers and third parties such as retailers or merchants. One consequence is the expansion of the roles of loyalty measures to the point of introducing a Virtual Currency. More than plain loyalty points, Virtual Currency is a tool to support multiple usage options granted to different types of users and utilizations. Based on the analysis of four case studies, this paper examines the business conditions and consequences of the implementation of a Virtual Currency by mobile and online platforms. One consistent element throughout all examples is the aspect of rewarding customers for desired user actions. Beyond this, the objectives of implementing a Virtual Currency go from strengthening loyalty to opening new revenue streams. The paper contributes to gain insights of how loyalty measures and rewarding schemes can be transformed and expanded to Virtual currency programs and how respective strategies can impact platforms’ business models and hence performance in the market

To be or not to be the media industry – Delineation to a fuzzy concept

Even though media industry studies are on the rise, there is a major issue: the concept itself is “fuzzy”. The goal of this paper is to shed light on the concept. To do so, the paper analyses existing approaches, combining academic references as well as sources commonly used by practitioners (e.g. the OECD, the EU, DCMS). It allows to give three delineations to the media industry: (1) A novel theoretical delineation, (2) a sectoral delineation, and (3) a delineation through the NACE statistical classification system. The main research findings are: (i) the development of a so-called circling model that shows how “mediated content” is at the core of the definition of the media industry; (ii) through the convergence tendencies, many different media activities can play a supporting or facilitating role; (iii) a list of NACE codes to guide statistical analysies

The Costs of Licensing for Online Music Services: An Explanatory Analysis for European Services

Article published in the Michigan State International Law Review

Platforms and Exposure Diversity: Towards a Framework to Assess Policies to Promote Exposure Diversity

The fragmentation of consumption and algorithms’ increasing impact on how content is recommended and displayed makes it even more important to analyse and promote exposure diversity, i.e., the extent to which audiences are exposed to, discover, and engage with diverse content. Although there is a growing literature addressing how to define media diversity in the context of the challenges posed by platformisation, this article translates the normative dimensions into a framework for operationalising exposure diversity into a tangible policy goal, taking into account datafication and its consequences in terms of increasing data requirements towards platforms. The main objective of this study is to analyse initiatives to assess exposure diversity in the platform era and to discuss how such assessment could be improved, particularly for policy initiatives. This involves addressing several challenges of existing approaches for the assessment of exposure diversity related to defining an appropriate frame of reference, determining the degree of diversity required, dealing with data transparency issues, and promoting user autonomy. To achieve this, we propose a framework for analysing initiatives aimed at assessing and promoting exposure to media diversity. Our framework is composed of four key features: measures (type of initiative), metrics (quantifying exposure diversity), data collection methods, and data requirements. We apply this framework to a set of 13 initiatives and find that policy initiatives can benefit from adopting metrics based on distances and experimenting with data collection methods

Cultural diversity, economic substructure and political will

Economists tend to agree that any beneficial effects of diversity are not produced by the market to any great extent but nevertheless they are less forthcoming on how that diversity could be defended. Here we show that cultural diversity cannot be achieved through purely national politics. The international organisation of "La Francophony" has a political role to play in defending cultural identities that go beyond national borders.Les économistes s'accordent à montrer que la diversité est un bienfait que le marché parvient difficilement à produire mais sont peu diserts sur les modalités de défense de cette diversité. Nous montrons que la diversité culturelle ne peut être atteinte par des politiques purement nationales. La Francophonie a un rôle politique de premier plan à jouer afin de défendre des identités culturelles qui dépassent les frontières des Etats-nation

Can online music platforms be fair? An interdisciplinary research manifesto

In this article we present a manifesto for research into the complex interplay between social media, music streaming services, and their algorithms, which are reshaping the European music industry—a sector that has transitioned from ownership to access-based models. Our focus is to assess whether the current digital economy supports a fair and sustainable development for cultural and creative industries. The manifesto is designed to pave the way for a comprehensive analysis. We begin with the context of our research by briefly examining the de-materialization of the music industry and the critical role of proprietary algorithms in organizing and ranking creative works. We then scrutinize the notion of 'fairness' within digital markets, a concept that is attracting increasing policy interest in the EU. We believe that, for 'fairness' to be effective, the main inquiry around this concept – especially as regards remuneration of content creators - shall be necessarily interdisciplinary. This presupposes collaboration across complementary fields to address gaps and inconsistencies in understanding how these platforms influence music creation and consumption and whether these environments and technologies should be regulated. We outline how interdisciplinary expertise (political science, law, economics, and computer science) can enhance the current understanding of 'fairness' within Europe's cultural policies and help address policy challenges. The article details how our research plan will unfold across various disciplinary hubs, culminating in the integration of their findings to produce the ‘key exploitable results’ of a Horizon Europe project (Fair MusE) that aims to explore challenges and opportunities of today’s digital music landscape