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Christian Handke

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Christian Handke

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Christian Handke

This chapter discusses essential elements of an economic analysis regarding the socio-economic implications of intellectual property. The aim is to help scholars from various disciplines interested in the economic reasoning behind IP for creative industries to recognize logically consistent and well-rounded assessments or to develop them themselves. The chapter covers: (1) a general introduction to the economic perspective on IP; (2) the application of economic theory to address the implications of unauthorized use and copyright protection; (3) empirical evidence on the effects of copyright protection on rights holder revenues and innovation as well as alternatives to copyright to help finance creativity; (4) key topics in the relatively extensive economic literature on patents and how it may inform research on IP in creative industries. It also (5) points out new issues regarding IP in creative industries in the context of digitization.

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Christian Handke

The past two decades have been challenging times in the music industry. Unauthorized copying of recorded music has been commonplace online. Revenues from many important ways of marketing recorded music have substantially decreased, whereas the variety of new works supplied and the quality of supply is greater than ever. This chapter discusses fundamental economic characteristics of recorded music, and surveys the essential functions in the production and commercialization of recorded music, as well as the various types of organizations that often conduct these steps of production in the contemporary music industry. Paradoxically, the interest of economists in the music industry has increased as the industry experienced a decline in financial terms. As this chapter documents, the central theme in the related literature is technological change in the course of digitization, which has many different aspects. In some respects, the literature has gone full circle. It went from visions of more competitive and efficient markets online to concerns about the market power of digital retailers, as well as hardship for creators and traditional parts of the industry, and now new hopes concerning crowdfunding and in particular blockchain technology. The music industry continues to pose important and engaging challenges to cultural economists.

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Christian Handke

How to ensure an adequate income for creators? This is a fundamental and challenging subject in cultural economics. The issue is particularly salient in the case of recorded music online. Virtually all students will have first-hand experience with legitimate and unauthorized ways of accessing music, so this industry makes for an engaging example. The chapter suggests a framework for teaching university students to apply reasonably advanced microeconomics and to: (1) structure their thoughts on how to encourage users to pay for digital music; (2) understand current business models in the music industry; and (3) work towards original insights and reasonable evaluations. The chapter is based on a comprehensive and general overview of methods to finance the production of quasi-public goods. It provides essential guidelines on how to cope with this inevitable subject in cultural economics, regarding the digital market for recorded music and beyond.

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Christian Handke and Erwin Dekker

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Christian Handke and Ruth Towse

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Edited by Ruth Towse and Christian Handke

Digital technologies have transformed the way many creative works are generated, disseminated and used. They have made cultural products more accessible, challenged established business models and the copyright system, and blurred the boundary between producers and consumers. This unique resource presents an up-to-date overview of academic research on the impact of digitization in the creative sector of the economy.
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Carolina Dalla Chiesa and Christian Handke

Crowdfunding is a novel and increasingly popular means to finance cultural projects. Crowdfunding calls are often used to appeal to the general public and collect funding for prospective cultural projects, and thus to raise revenues before the full costs of creation are incurred. Crowdfunding platforms on the Internet were first devised for cultural projects. To date the practice has found many other applications, and crowdfunding platforms have raised billions of US dollars. This chapter introduces typical aspects of crowdfunding, surveys important variants and platforms, and it discusses the state of empirical research. This chapter also develops an analysis of crowdfunding based on core elements of cultural economics – including experience good attributes, socially interdependent demand formation, public good attributes and intrinsic motivation to participate in creative projects. While it is hard to predict the future import of crowdfunding, the phenomenon is fascinating because it constitutes an innovation from the cultural sector that has already had broad applications in many other aspects of the economy.

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Christian Handke, Paul Stepan and Ruth Towse