Neckties in the tropics: a model of international trade and cultural diversity

James Rauch and Vitor Trindade

Canadian Journal of Economics/Revue canadienne d'économique, 2009, vol. 42, issue 3, 809-843

Abstract: Abstract Some cultural goods are consumed socially and are characterized by the same consumption network externalities as languages. Also, producers of new cultural goods in any one country draw on the stock of ideas generated by previous cultural production in all countries. For such goods, costless trade and communication tend to lead to the dominance of one cultural style, increasing utility in the short run but reducing quality and welfare in the long run. Increasing protection while keeping communication costs low may stimulate production of cultural goods that are ‘compatible’ with the dominant style, adding little to the stock of usable ideas. Certains biens culturels sont consommés socialement et sont caractérisés par les mêmes externalités de réseau que les langues. Les producteurs de nouveaux biens culturels dans un pays quelconque tirent leur inspiration de la production culturelle antérieure dans tous les pays. Pour de tels biens, commerce et communication sans coûts tendent à permettre la dominance d'un style culturel – accroissant l'utilitéà court terme mais réduisant les niveaux de qualité et de bien‐être à long terme. Le fait d'accroître le niveau de protection tout en gardant les coûts de communication bas peut stimuler la production de biens culturels qui sont ≪compatibles≫ avec le style dominant, ajoutant peu au stock des idées utilisables.

Date: 2009
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Citations: View citations in EconPapers (17)

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https://doi.org/10.1111/j.1540-5982.2009.01528.x

Related works:
Journal Article: Neckties in the tropics: a model of international trade and cultural diversity (2009)
Working Paper: Neckties in the Tropics: A Model of International Trade and Cultural Diversity (2005)
Working Paper: Neckties in the Tropics: A Model of International Trade and Cultural Diversity (2005)
Working Paper: Neckties in the Tropics: a Model of International Trade and Cultural Diversity (2004)
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