The cultural industries, with their many different books, films, songs and artworks, contribute in large part to identity formation, enjoyment and personal development. As such, they largely shape our lives and identities, as individuals as well as entire nations. At the same time, they are products and services like any other commodity; they are, perhaps, of more sentimental value, but they are still traded and sold in markets like anything else.

As a result of the special function that culture has for the public in general, it is all the more important to understand the economics of its production and consumption – in short: the market for culture. This is where the economic toolbox helps to unlock some of the key dynamics of the sector, helping us to understand why we observe the prices, quantities, policies and consumption patterns that we do.

Of course, economists by their very profession focus only on those aspects of the cultural industries that can be captured with their theoretical and empirical tools. These are by no means exhaustive, and always need to be contextualised in the specific academic discipline associated with a particular cultural sector. An economist cannot explain the beauty of a Hemingway or a Picasso in terms of its composition or its innovative value in terms of the craft. However, when it comes to analysing the masterminds behind creative production, as well as the patterns that help explain why some cultural pieces have a lasting impact while others do not, economists most certainly can add to the discussion.

Especially in light of the major changes we have seen in recent decades and the impact they have had on the cultural industries, economics makes a valuable contribution to practitioners as well as academics by offering insight. If we want to understand why a single artwork can sell for US$450 million, the artistic valuation alone will certainly not tell the whole story. Neither will globalization or financial markets. However, if art market and art historian expertise go hand in hand with economic knowledge, such price records might seem less beyond our grasp. The same is certainly true for other cultural markets, such as the music industry, or others that we have covered in this book.