Heterogeneity in demand for performances and seats in the theatre

Research Article


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.


theatre pricing heterogeneity censored demand 

JEL Codes




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”.


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© Macmillan Publishers Ltd 2017

Authors and Affiliations

  1. 1.Research Group for Applied Markets and Enterprises StudiesNational Research University Higher School of EconomicsPermRussia

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