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Theme park rides are Giffen goods

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  • Garth Heutel

Abstract

Using a unique proprietary data set on the behavior of guests visiting theme parks, I document evidence for Giffen behavior in the demand for theme park rides. On average, when the price of a ride increases, that is, the wait time increases, then the probability of riding it increases. This relationship arises predominantly among demand for the least‐desirable rides, it arises predominantly in the theme parks with the fewest number of substitute rides, and it is robust to controlling for expectations of future wait times and other sensitivity analyses. These patterns are all consistent with Giffen behavior.

Suggested Citation

  • Garth Heutel, 2025. "Theme park rides are Giffen goods," Southern Economic Journal, John Wiley & Sons, vol. 91(3), pages 1107-1139, January.
    • Handle: RePEc:wly:soecon:v:91:y:2025:i:3:p:1107-1139
    DOI: 10.1002/soej.12735
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    References listed on IDEAS

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    1. Reza H. Ahmadi, 1997. "Managing Capacity and Flow at Theme Parks," Operations Research, INFORMS, vol. 45(1), pages 1-13, February.
    2. Charles van Marrewijk & Peter A. G. van Bergeijk, 1990. "Giffen Goods and the Subsistence Level," History of Political Economy, Duke University Press, vol. 22(1), pages 145-148, Spring.
    3. Walter Y. Oi, 1971. "A Disneyland Dilemma: Two-Part Tariffs for a Mickey Mouse Monopoly," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 85(1), pages 77-96.
    4. Davies, John E, 1994. "Giffen Goods, the Survival Imperative, and the Irish Potato Culture," Journal of Political Economy, University of Chicago Press, vol. 102(3), pages 547-565, June.
    5. Robert T. Jensen & Nolan H. Miller, 2008. "Giffen Behavior and Subsistence Consumption," American Economic Review, American Economic Association, vol. 98(4), pages 1553-1577, September.
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