week 1
caves
- Theory of contacts addresses - why self-interested parties structure their deals as they
do. This field of industrial organisations studies- why transactions cure cure within
continuing firms buying between independent parties and why those firms are a few or
many operationg in the market by several.
- demand is uncertain —> research and pretesting are ineffective. However, because a
creative Product’s success can seldom be explained ever ex post by the satisfaction of
some pre-existing need.
nobody knows property- this property implies that the risk associated with any given
creative product is high ended ways of allocating are sharing it will be important for the
organisation of production.
Creative product is an experienced good.
- creative workers care about their product —>
Humdrum inputs demand a wage at least equal to what they earn in the outside market for
inputs for their type. They are just in it for the money.
art for art’s sake property- artists turn out more creative product than if they well you that
only incomes they receive, and on average earn lower incomes than their general ability
would otherwise warrant.
When the worker cares deeply about the traits of the product, the problem of organising its
production is fundamentally changed.
- diversity of skills required by creative products
motley crew property- has a number of implications about selecting the team of inputs for a
given creative product and sustaining all team members’ cooperation while production is
under way. requires a lot of specialized people.
-differentiated products —>
cultural products cam be different I’m various ways. When a creative product goes to
consumers for their assessment, they value it in comparison to similar creative products.
two similar, but not identical artworks are horizontally differentiated- same price, some
people prefer one, some another. The more dimensions (color, size, skill…) the more its
likely to be a hor. dif.
Vertically differentiated- after consuming both, people assume one better than another.
Creative products generally exhibit the mixture of both (ver;hor)
Infinite variety property- invokes either the universe of possibilities from which artist
chooses, or the array of actual creative product from which buyer chooses.
- vertical differentiated skills—>
A list/B list property- quality differentiation.
Differential rent- this extra total amount that people will pay to see a movie with an A- list
star over the same with a b-list star. Limits the maximum that the A-list star can demand.
- time is of essence
- durable products and rents-> durability is the art long property.
griswold
Production, distribution and reception of culture
, The sociological approach to culture maintains the practices or objects that seem natural,
are not.
Cultural objects are not simply the «natural» products of some social context, but are
produced, distributed, marketed, received and interpreted by a variety of people and
organisations.
— production of culture
Podtction-Of-Culture approach (Peterson) looks at the «complex apparatus which is
interposed btw cultural creators and consumers». It includes facilities for production and
distribution; marketing techniques, such as advertising, co-opting mass-media, or targeting;
and the creation of situations that bring potential cultural consumers in contact with cultural
objects.
— the culture industry system (Hirsch, 1972)
in other words- the organizations that produce mass culture staples, such as records,
popular books, and low-budget films. Hirsch posted out, that such cultural objects share a
number of features: demand uncertainty, relatively cheap technology, and an oversupply of
would-be cultural creators. In the light of these factors, this system works to regulate and
package innovation and thus to transform creativity into predictable, marketable packages.
