“Economists – on the arts? Isn’t this a blasphemy? On the contrary: we believe that economists are able to contribute to a better understanding of many different aspects of both the visual and the performing arts.”
(Bruno Frey & Werner Pommerehne 1990:vii)
Economy and art - for many decades these two fields were considered to be incompatible. But with the genesis of cultural economics the application of economic theories on art became generalizable.
Among others Bruno Frey, a Swiss economist, devoted a great deal of his research work to explorer in what way an economic viewpoint and/or the market can be beneficial to art and what effects different instruments have on the arts and on society in general.
The first part of this book is giving a short overview of the development and characteristics of Cultural Economy and introduces Bruno Frey’s work. Afterwards Frey’s argumentation considering the effects of the market on art is presented and contrasted with other authors in order to proceed to a general critique of the market. Concluding, the book opens up a global perspective, underlining the consequences of an economisation of the arts.
Table of Contents
1. Introduction
2. Development and Presentation of the field of Cultural Economics
2.1. What constitutes an economic perspective?
2.2. Comparison of the economic and the sociological point of view
3. Bruno Frey
3.1. Life and significance as a scientist
3.2. Summary of selected works
3.3. Main concepts and their relevance for the arts
4. “No Policy is the best Policy”? Arguing for and against markets
5. Conclusion
Objectives & Core Topics
This paper examines the complex relationship between art and the economy, focusing on the theories of economist Bruno Frey to evaluate whether market-oriented approaches are beneficial or detrimental to the cultural sector. The research investigates how different funding structures and economic interventions influence artistic production, motivation, and the diversity of art in society.
- The development and characteristics of the field of Cultural Economics.
- The influence of economic perspectives, specifically the concept of intrinsic vs. extrinsic motivation.
- Analysis of the "Crowding-Out Effect" and its consequences for artistic autonomy.
- A comparative critique of state support versus market-driven cultural financing.
- The socio-economic implications of the "economisation" of the arts.
Excerpt from the Book
3.3 MAIN CONCEPTS AND THEIR RELEVANCE TO THE ARTS
A basic concept used by Frey is intrinsic motivation. Standard economic theory rather focuses on extrinsic motivation and is normally not interested in making any differentiation at all among sources of motivation as they are all “just manifestation of underlying preferences” (Frey & Jegen 2000:592). Frey however adopted the term from psychology and introduced it into economics.
Defining intrinsic motivation Frey sticks to Deci who postulates the following definition (1971:105): “one is said to be intrinsically motivated to perform an activity when one receives no apparent reward except the activity itself” (Frey 1998:13).
Intrinsic motivation is a major source of creativity. Being especially dominant in the first artistic years of an artist and leading to particular productivity, intrinsic motivation is of special interest for the arts, Frey 2003:7).
As intrinsic motivation can be a fruitful source of productivity, economists think about possibilities to raise it and thereby draw on the classical Price Effect (Frank 2000:48). However, psychologists (Lepper&Green, Deci, Ryan) suggest that under certain conditions rewards undermine intrinsic motivation. This phenomenon got well known under the name of „The Hidden Cost of Reward“ (for extensive reference see Lepper&Green 1978). By introducing this effect into economy, calling it ’Crowding-Out Effect’ (Frey 1998:15, Frey 2001:91), Frey broke with the classical economic theorem – the Price Effect. Frey elaborated under which conditions Crowding Effects occur and showed that the Price and Crowding Effects are concurrently active. He demonstrated that it depends on the relation of both effects what consequences they might have (Frey 1998:22). Generally there are two options: If rewards are perceived to be controlling then the Crowding-Out Effect might appear, inducing impaired self-esteem, self-determination and expression possibilities (Frey 1998:16f.). In the consequence intrinsic motivation is lost and substituted by extrinsic motivation being focussed on extrinsic (monetary) incentives alone (Frey 1998:17).
Summary of Chapters
1. Introduction: This chapter outlines the historical incompatibility between economy and art, introduces the emerging field of cultural economics, and sets the paper's focus on Bruno Frey's work.
2. Development and Presentation of the field of Cultural Economics: It tracks the history of the field from early concerns about the "cost-disease" to the systematic study of the interactions between individuals, institutions, and art.
3. Bruno Frey: This chapter profiles Bruno Frey as a scientist and details his central theoretical contributions, specifically the concepts of intrinsic motivation and the "Crowding-Out Effect" in relation to artistic production.
4. “No Policy is the best Policy”? Arguing for and against markets: This section explores the debate between state funding and market reliance, questioning the effects of private sponsorship on artistic diversity and innovation.
5. Conclusion: The paper synthesizes the risks of the "economisation" of art, arguing for a more nuanced approach that balances support structures without sacrificing artistic autonomy or intrinsic motivation.
Keywords
Cultural Economics, Bruno Frey, Intrinsic Motivation, Crowding-Out Effect, Market, State Support, Artistic Autonomy, Economisation, Public Goods, Merit Goods, Cultural Policy, Motivation, Disneyfication, Value, Capital.
Frequently Asked Questions
What is the core subject of this paper?
The paper explores the intersection of art and economy, specifically investigating the impact of market-driven logic on cultural institutions and individual artistic motivation.
What are the primary themes discussed?
Key themes include the development of Cultural Economics, the role of economic vs. sociological perspectives, the critique of neoliberal market policies, and the dangers of treating art as a commercial product.
What is the main objective of the author?
The objective is to examine Bruno Frey's economic approach to the arts and determine whether his market-oriented views are sufficient for preserving the unique value and autonomy of culture.
Which methodology is applied in the research?
The research uses a qualitative, analytical approach, contrasting Frey's economic theories with sociological perspectives from authors like Pierre Bourdieu and Christoph Deutschmann to offer a balanced critique.
What topics are covered in the main body?
The main body covers the definition of cultural economics, the analysis of specific works by Bruno Frey, the debate regarding "No Policy is the best Policy," and an evaluation of the consequences of economizing the arts.
Which keywords best characterize this work?
Primary keywords include Cultural Economics, Intrinsic Motivation, Crowding-Out Effect, Market, Artistic Autonomy, and Economisation.
How does the "Crowding-Out Effect" specifically impact artists?
Frey argues that when external monetary rewards are perceived as controlling, they can destroy an artist's intrinsic motivation, leading to a potential reduction in artistic innovation and diversity.
What is the author's stance on the "economisation" of the arts?
The author remains critical of the total economisation of the arts, arguing that it threatens artistic autonomy and the "moral value of life" by reducing complex cultural achievements to mere market products.
Why does the author advocate for a "mixture" of support systems?
The author suggests that neither the state nor the market alone is perfect; therefore, a hybrid support system is proposed to preserve artistic freedom while addressing the inherent flaws of each system.
- Quote paper
- Juliane Krueger (Author), 2006, Culture and economy - a distinct relationship, Munich, GRIN Verlag, https://www.grin.com/document/57541
