Entertainment without Borders: The Impact of Digital Technologies on Government Cultural Policy

Posted: 14 Jul 2008 Last revised: 2 Sep 2014

See all articles by Hsing Kenneth Cheng

Hsing Kenneth Cheng

University of Florida - Warrington College of Business

Juan Feng

University of Florida - Warrington College of Business Administration

Gary Koehler

University of Florida

Sean R. Marston

University of Florida - Warrington College of Business Administration

Date Written: July 11, 2008

Abstract

Many countries limit the influences of foreign entertainment products such as music, film, and television programs to protect their cultural identify. Commonly observed policy tools include quotas, tariffs, and subsidies. However, advances in digital technology create new avenues, such as the Internet, for consumers to access foreign entertainment programs bypassing the government protection methods. This calls for a re-examination of the effectiveness of these traditional tools. We build a unified analytical framework to study the impact of digital technology on cultural protection policies. We find that the performances of these tools are greatly affected by the quality difference between domestic and foreign entertainment programs through the traditional channel and the Internet. We find that a tariff may be superior in creating a larger domestic social welfare. Moreover, the presence of leakage through the Internet reduces the effectiveness of a quota, while making a subsidy a more useful tool. We then further examine the presence of piracy on the effectiveness of these protection policies.

Keywords: cultural protection, digital entertainment, information leakage

Suggested Citation

Cheng, Hsing Kenneth and Feng, Juan and Koehler, Gary and Marston, Sean R., Entertainment without Borders: The Impact of Digital Technologies on Government Cultural Policy (July 11, 2008). Available at SSRN: https://ssrn.com/abstract=1158513

Hsing Kenneth Cheng

University of Florida - Warrington College of Business ( email )

P.O. Box 117169
Gainesville, FL 32611-7169
United States
352-392-7068 (Phone)
352-392-5438 (Fax)

Juan Feng

University of Florida - Warrington College of Business Administration ( email )

Gainesville, FL 32611
United States

Gary Koehler

University of Florida ( email )

PO Box 117165, 201 Stuzin Hall
Gainesville, FL 32610-0496
United States

Sean R. Marston (Contact Author)

University of Florida - Warrington College of Business Administration ( email )

Gainesville, FL 32611
United States

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