IDEAS home Printed from https://ideas.repec.org/a/kap/jculte/v20y1996i1p25-50.html
   My bibliography  Save this article

A microeconometric study of theatre demand

Author

Listed:
  • Louis Lévy-Garboua
  • Claude Montmarquette

Abstract

We develop a model of theatre demand with learning by consuming, and test some of its implications on a large random sample of theatregoers and non-theatregoers. This seems to be the most comprehensive econometric study of demand for the theatre from individual data. We hypothesize that each time the consumer watches a play, he experiences a degree of pleasant or unpleasant surprise on the basis of which he will revise his future expectations of his own taste. The learning phase is likely to be unusually long for highly differentiated cultural goods. Our set of data contains unique information about the full price and the fixed cost of theatre, the objective quality of the outing, past experience of and taste for the theatre, and consumption of substitute leisure activities such as reading, television and cinema. Our methodology and data enable us to infer price elasticity on survey data from knowledge of theatregoing experience and taste. After controlling for many variables, we conclude that demand for the theatre is price-elastic, which contradicts previous estimates on aggregate time-series data. Moreover, we estimate demand conditional on past attendance after controlling for selectivity bias. Satisfaction reported by consumers after the last play is also estimated and interpreted as an ordinal conditional choice. Copyright Kluwer Academic Publishers 1996

Suggested Citation

  • Louis Lévy-Garboua & Claude Montmarquette, 1996. "A microeconometric study of theatre demand," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 20(1), pages 25-50, March.
  • Handle: RePEc:kap:jculte:v:20:y:1996:i:1:p:25-50 DOI: 10.1007/s10824-005-5050-y
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10824-005-5050-y
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November.
    2. Gapinski, James H, 1986. "The Lively Arts as Substitutes for the Lively Arts," American Economic Review, American Economic Association, vol. 76(2), pages 20-25, May.
    3. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, pages 675-700.
    4. Gapinski, James H, 1984. "The Economics of Performing Shakespeare," American Economic Review, American Economic Association, vol. 74(3), pages 458-466, June.
    5. Boyer, Marcel, 1983. "Rational demand and expenditures patterns under habit formation," Journal of Economic Theory, Elsevier, pages 27-53.
    6. Pollak, Robert A, 1970. "Habit Formation and Dynamic Demand Functions," Journal of Political Economy, University of Chicago Press, vol. 78(4), pages 745-763, Part I Ju.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    theatre demand; learning by consuming; individual data; conditional choice and satisfaction (JEL: Z1; L82);

    JEL classification:

    • Z1 - Other Special Topics - - Cultural Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jculte:v:20:y:1996:i:1:p:25-50. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.