Course name Economics of tourism
Study-unit Code 20098306
Location ASSISI
Curriculum Eventi, cultura e territorio
Lecturer Maria Chiara D'errico
  • Maria Chiara D'errico
  • 42 ore - Maria Chiara D'errico
Course Regulation Coorte 2018
Supplied 2020/21
Supplied other course regulation
Learning activities Affine/integrativa
Area Attività formative affini o integrative
Sector SECS-P/01
Type of study-unit Obbligatorio (Required)
Type of learning activities Attività formativa monodisciplinare
Language of instruction Italian. Erasmus and International students are invited to attend the course. Readings and other teaching materials are also available in English; Written and oral tests can be taken in English. Contact the
Lecturer for an appointment in the first week of lessons.
Contents 1. Introduction
2. The Art market
3. The Art demand
4. The Art supply
5. Inequalities and uncertainty in the income of artists
6. Public and private investments
7. Cultural assets
8. Museums and libraries
9. The Live Performance Market
10. The analysis of the environmental heritage and the connection with the economic system
Reference texts G. Candela, A.E. Scorcu (2004) Economia delle arti, Zanichelli, Bologna.
Any basic microeconomic text can be consulted for the part related to microeconomics recalls.
Slides and other learning materials will be available during the lessons.
Educational objectives The aim of the course is to provide the student with the basics of economic concepts and methods involved
the analysis of economic problems related to cultural and environmental heritage.
The course focuses on analytical tools for the evaluation of artistic and cultural heritage
and their link with territorial institutions and systems. The course is strucutred into the following main topics:
1) Analysis of the demand and supply of the different art markets in a microeconomic framework.
2) Market failures applied to the cultural sector
(meritorious goods, public goods, externalities). The analysis of public intervention in the art markets,
analysis and evaluation of the impact of artistic heritage and cultural activities in the local and national economy.
3) Intergenerational aspects of cultural and environmental problems. The discount of the future: Cost benefit and cost effectiveness analysis.
4) The last part of the course will focus on the analysis of the relationship between economy and environment
as well as the economic analysis of environmental heritage for the appropriate policies design.
Prerequisites In order to be able to understand and successfully tackle the course, students should have the basic knowledge of microeconomics; these are notions that students should have already acquired during the learning program.
Teaching methods The course is organized as follows:
-Lectures on all the subject f the courses;
-Tutorials lessons covering all the subjects.
Other information Even if the course attendance is not compulsory it is strongly recommended.
Learning verification modality The exam consists in a 90 minuts written test and in non compulsory oral test. The written test aims to assuring the le level of knowledge and understandng achieved bu the student. The written test is composed by four open questions covering all the subjects. It is possible to take a mid-term exam.
Extended program 1. Introduction to art
1.1 Some microeconomic notions . Market failures, monopolies and monopolistic behaviors, public goods, information asymmetries and externalities. Duopoly and collusive strategies.
1.2 Art, culture and tourism

2. The art market
2.1 Art goods and services
2.2 The exchange of goods and services of art
2.3 The artistic and economic evaluation of the exchange
2.4 The role of gatekeeper
2.5 Public goods and artistic goods
2.6 Life cycle of a work of art

3. The Art demand
3.1 Art consumption
3.2 Habit formation theory
3.3 Effects in continuous time
3.4 Social externalities
3.5 An empirical analysis of the art demand

4. The offer of art
4.1 The production of art assets
4.2 The preservation of art assets
4.3 The marketing of art assets
4.4 The role of the critic
4.5 Monopoly and price discrimination
4.6 Monopoly power and falsification

5. Artist income inequalities and uncertainty
5.1 Artists and their income
5.2 Satisfaction and sacrifice
5.3 Inequalities in the income of artists
5.4 The Legal Protection of Authors
5.5 Legal Protection of Masters
5.6 The uncertainty of the artists' merits
5.7 The artists' selection

6. Public and private interventions in favor of art
6.1 Public intervention in the art market
6.2 Intervention modes
6.3 Types of artistic goods and the reasons for public intervention
6.4 The limits of public intervention
6.5 Tools for intervention and decentralization
6.6 Monetary and in-kind grants
6.7 The cultural market Regulation
6.8 Private intervention in the art market
6.9 Art organizations, public funding and sponsorships
6.10 The financing market and fund-raising

7. Cultural assets
7.1 Definition of Cultural Property
7.2 Public action and cultural heritage
7.3 The economic classification of cultural goods
7.4 Value of cultural goods

8. Museums and libraries
8.1 Museums
8.2 Landing and evolution of museums
8.3 Function and organization of a museum
8.4 The role of competition in the museum sector: product, price, promotion and marketing
8.5 Funding of museums
8.6 Museum setup and management to the visitor
8.7 Permanent and temporary exhibitions
8.8 Museums on the Net
8.9 Virtual museums
8.10 Libraries and their production
8.11 Costs and management of libraries
8.12 Economic impact of museums and libraries

9. The live art market
9.1 Shows
9.2 The demand
9.3 The supply
9.4 Production costs
9.5 Baumol's technical progress and morbidity
9.6 The profits of entertainment companies
9.7 The prices of the shows
9.8 Promotion and Marketing
9.9 Festivals and Related Economic Effects