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Heterogeneity in demand for performances and seats in the theatre

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  • Alina Ozhegova

    (National Research University Higher School of Economics)

  • Evgeniy M. Ozhegov

    (National Research University Higher School of Economics)

Abstract

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.

Suggested Citation

  • Alina Ozhegova & Evgeniy M. Ozhegov, 2018. "Heterogeneity in demand for performances and seats in the theatre," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(3), pages 131-145, June.
    • Handle: RePEc:pal:jorapm:v:17:y:2018:i:3:d:10.1057_s41272-017-0108-y
    DOI: 10.1057/s41272-017-0108-y
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    References listed on IDEAS

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    Cited by:

    1. Eric Kolhede & J. Tomas Gomez-Arias & Anna Maximova, 2023. "Price elasticity in the performing arts: a segmentation approach," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(3), pages 523-550, September.
    2. Evgeniy M. Ozhegov & Alina Ozhegova, 2018. "Segmentation of Theatre Audiences: A Latent Class Approach for Combined Data," HSE Working papers WP BRP 198/EC/2018, National Research University Higher School of Economics.

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