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On the Public Provision of the Performing Arts

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  • Traub, Stefan
  • Missong, Martin

Abstract

In this paper, we present a model in which the performing arts are modelled as congestible public goods. In accordance with empirical evidence, the production of seat capacity is assumed to be subject to fixed costs. We estimate the parameters of the model?s demand and cost functions using German data. Using these estimates in a subsequent social choice analysis, we show that the current situation in the German performing arts sector is best described by a directorship that under the influence of a selfish theater lobby maximizes only the welfare of the spectators. Such an equilibrium, characterized by too low ticket prices and too large capacity, is most likely to establish if citizens have a very positive ex ante notion of the performing arts. --

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Bibliographic Info

Paper provided by Christian-Albrechts-University of Kiel, Department of Economics in its series Economics Working Papers with number 2003,02 [rev.].

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Date of creation: 2003
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Handle: RePEc:zbw:cauewp:2850

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Keywords: Performing Arts; Public Facilities; Congestion;

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References

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  1. Small, Kenneth A. & Gomez-Ibanez, Jose A., 1999. "Urban transportation," Handbook of Regional and Urban Economics, Elsevier, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 46, pages 1937-1999 Elsevier.
  2. Mills, David E, 1981. "Ownership Arrangements and Congestion-Prone Facilities," American Economic Review, American Economic Association, American Economic Association, vol. 71(3), pages 493-502, June.
  3. Reiter, Michael & Weichenrieder, Alfons J., 1999. "Public Goods, Club Goods, and the Measurement of Crowding," Journal of Urban Economics, Elsevier, vol. 46(1), pages 69-79, July.
  4. Traub, Stefan & Missong, Martin, 2005. "On the public provision of the performing arts," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 35(6), pages 862-882, November.
  5. Sandmo, Agnar, 1973. "Public Goods and the Technology of Consumption," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 40(4), pages 517-28, October.
  6. Oakland, William H., 1972. "Congestion, public goods and welfare," Journal of Public Economics, Elsevier, Elsevier, vol. 1(3-4), pages 339-357, November.
  7. Abbe-Decarroux, Francois, 1994. "The perception of quality and the demand for services : Empirical application to the performing arts," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 23(1), pages 99-107, January.
  8. Edelson, Noel M, 1971. "Congestion Tolls Under Monopoly," American Economic Review, American Economic Association, American Economic Association, vol. 61(5), pages 873-82, December.
  9. Oates, Wallace E., 1988. "On the measurement of congestion in the provision of local public goods," Journal of Urban Economics, Elsevier, vol. 24(1), pages 85-94, July.
  10. Richard Arnott & Marvin Kraus, 2003. "Transport Economics," Boston College Working Papers in Economics, Boston College Department of Economics 553, Boston College Department of Economics.
  11. Blaug, Mark, 2001. " Where Are We Now on Cultural Economics?," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 15(2), pages 123-43, April.
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Cited by:
  1. Paul Madden, 2008. "Price, quality and welfare consequences of alternative club objectives in a professional sport league," The School of Economics Discussion Paper Series, Economics, The University of Manchester 0802, Economics, The University of Manchester.
  2. Traub, Stefan & Missong, Martin, 2005. "On the public provision of the performing arts," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 35(6), pages 862-882, November.
  3. Werck, Kristien & Heyndels, Bruno & Geys, Benny, 2007. "The impact of central places on spatial spending patterns: evidence from Flemish local government cultural expenditures," Discussion Papers, Research Unit: Market Processes and Governance SP II 2007-10, Social Science Research Center Berlin (WZB).
  4. Madden, Paul, 2012. "Fan welfare maximization as a club objective in a professional sports league," European Economic Review, Elsevier, Elsevier, vol. 56(3), pages 560-578.
  5. Thiess Buettner & Eckhard Janeba, 2013. "City Competition for the Creative Class," CESifo Working Paper Series 4417, CESifo Group Munich.

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