Heterogeneity in demand for performances and seats in the theatre
- 26 Downloads
Studying the heterogeneity of consumers allows to price the product differently for consumer segments or groups of a product. In this paper, we estimate a model of aggregate demand for Perm Opera and Ballet Theatre focusing on the heterogeneity in price effect on demand for tickets on different performances and seats. We estimate the parameters of demand function using censored quantile regression that accounts for the limited capacity of the theatre house. We reveal the price effect variation across different types of theatrical productions and seats with lower elastic demand on ballets and for seats of higher quality.
Keywordstheatre pricing heterogeneity censored demand
The article was prepared within the framework of the Academic Fund Program at the National Research University Higher School of Economics (HSE) in 2015-2016 (Grant No. 15-05-0063) and by the Russian Academic Excellence Project “5-100”.
- Houthakker, H. and Taylor, L. (1970) Consumer Demand in the United States. Cambridge: Harvard University Press.Google Scholar
- Pommerehne, W., Kirchgassner, G. (1987) The impact of television on the demand for cinema and theater performances. In Grant, N.K., et al. (Eds.), Economic Efficiency and the Performing Arts (pp. 44–61). Akron: Association for Cultural Economics.Google Scholar
- Seaman, B. (2006) Empirical studies of demand for the performing arts. In V. Ginsburgh and D. Throsby (Eds.), Handbook of the Economics of Arts and Culture (Chap. 14) (pp. 415–472). NorthHolland: Elsevier.Google Scholar
- Throsby, D. and Withers, G. (1979) The Economics of the Performing Arts. New York: St. Martins.Google Scholar
- Throsby, D. and Withers, G. (1983) Measuring the demand for the arts as a public good: Theory and empirical results. Economics of Cultural Decisions 177–191.Google Scholar
- Throsby, D. (1994) The production and consumption of the arts: A view of cultural economics. Journal of Economic Literature 32(1): 1–29.Google Scholar