Quality Investment and Price Formation in the Performing Arts Sector: A Spatial Analysis
AbstractIn this paper, we present a spatial model of the public provision of the performing arts. Agents behave boundedly rational. Art directors set performance quality according to their aspiration levels. While taking into account the spatial distribution of the population, administrative directors in calculating ticket prices ignore that they compete with neighboring performing arts organization (PAOs) for audience. The model is tested empirically using a spatial autoregressive (SAR) model with a complete data set of German PAOs and cities. Our data support the model and help to explain the size and distribution of losses in the public performing arts sector. --
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Bibliographic InfoPaper provided by Christian-Albrechts-University of Kiel, Department of Economics in its series Economics Working Papers with number 2005,16.
Date of creation: 2005
Date of revision:
Performing Arts; Local Public Goods; Quality; Spatial Competition; Bounded Rationality;
Find related papers by JEL classification:
- Z10 - Other Special Topics - - Cultural Economics - - - General
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- R59 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-08-05 (All new papers)
- NEP-CUL-2006-08-05 (Cultural Economics)
- NEP-GEO-2006-08-05 (Economic Geography)
- NEP-PBE-2006-08-05 (Public Economics)
- NEP-URE-2006-08-05 (Urban & Real Estate Economics)
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