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Pay as You Go: A New Proposal for Museum Pricing

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  • Bruno S. Frey
  • Lasse Steiner

Abstract

Museums have many different goals beyond efficiency such as social equity, financial revenue, attracting donors and gaining international, regional or local prestige. Various pricing schemes are being discussed with the aim of reaching these goals. The classical ones are entry prices and free entry. The museum club solution or exit donations allow for various additional goals. Each scheme has clear advantages and disadvantages. We propose an innovative pricing instrument: Exit prices, which are charged according to the time spent in a museum. This scheme has a number of notable advantages, in particular the better choice available to the visitors, which increases their satisfaction.

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Bibliographic Info

Paper provided by Center for Research in Economics, Management and the Arts (CREMA) in its series CREMA Working Paper Series with number 2010-10.

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Date of creation: Apr 2010
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Handle: RePEc:cra:wpaper:2010-10

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Keywords: Prices; museums; culture; donations; homo oeconomicus;

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References

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  1. Meier, Stephan & Stutzer, Alois, 2004. "Is Volunteering Rewarding in Itself?," IZA Discussion Papers 1045, Institute for the Study of Labor (IZA).
  2. Stephen Bailey & Peter Falconer, 1998. "Charging for Admission to Museums and Galleries: A Framework for Analysing the Impact on Access," Journal of Cultural Economics, Springer, vol. 22(2), pages 167-177, June.
  3. Victor Ginsburgh & David Throsby, 2006. "Handbook of the economics of art and culture," ULB Institutional Repository 2013/1673, ULB -- Universite Libre de Bruxelles.
  4. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard, 1986. "Fairness as a Constraint on Profit Seeking: Entitlements in the Market," American Economic Review, American Economic Association, vol. 76(4), pages 728-41, September.
  5. Volker Kirchberg, 1998. "Entrance Fees as a Subjective Barrier to Visiting Museums," Journal of Cultural Economics, Springer, vol. 22(1), pages 1-13, March.
  6. Breton,Albert & Wintrobe,Ronald, 2008. "The Logic of Bureaucratic Conduct," Cambridge Books, Cambridge University Press, number 9780521071727, April.
  7. Elina Lampi & Matilda Orth, 2009. "Who Visits the Museums? A Comparison between Stated Preferences and Observed Effects of Entrance Fees," Kyklos, Wiley Blackwell, vol. 62(1), pages 85-102, 02.
  8. Bruno S. Frey & Paolo Pamini, 2009. "Making World Heritage Truly Global: The Culture Certificate Scheme," CESifo Working Paper Series 2745, CESifo Group Munich.
  9. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-29, March-Apr.
  10. Juan Prieto-Rodriguez & Victor Fernandez-Blanco, 2003. "Optimal Pricing And Grant Policies For Museums," Public Economics 0309002, EconWPA.
  11. John O'hagan, 1998. "Art Museums: Collections, Deaccessioning and Donations," Journal of Cultural Economics, Springer, vol. 22(2), pages 197-207, June.
  12. Bonita Kolb, 1997. "Pricing as the Key to Attracting Students to the Performing Arts," Journal of Cultural Economics, Springer, vol. 21(2), pages 139-146, June.
  13. Bruno S. Frey & Stephan Meier, . "The Economics of Museums," IEW - Working Papers 149, Institute for Empirical Research in Economics - University of Zurich.
  14. Faye Steiner, 1997. "Optimal Pricing of Museum Admission," Journal of Cultural Economics, Springer, vol. 21(4), pages 307-333, December.
  15. Bruno S. Frey & Stephan Meier, 2004. "Social Comparisons and Pro-social Behavior: Testing "Conditional Cooperation" in a Field Experiment," American Economic Review, American Economic Association, vol. 94(5), pages 1717-1722, December.
  16. David Maddison, 2004. "Causality and Museum Subsidies," Journal of Cultural Economics, Springer, vol. 28(2), pages 89-108, May.
  17. William Luksetich & Mark Partridge, 1997. "Demand functions for museum services," Applied Economics, Taylor & Francis Journals, vol. 29(12), pages 1553-1559.
  18. Frey, Bruno S. & Pommerehne, Werner W., 1993. "On the fairness of pricing -- An empirical survey among the general population," Journal of Economic Behavior & Organization, Elsevier, vol. 20(3), pages 295-307, April.
  19. David Maddison & Terry Foster, 2003. "Valuing congestion costs in the British Museum," Oxford Economic Papers, Oxford University Press, vol. 55(1), pages 173-190, January.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. How to price museum visits
    by Economic Logician in Economic Logic on 2010-06-15 14:25:00
  2. Inträde till museer
    by Niclas Berggren in Nonicoclolasos on 2010-06-23 03:33:06

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