IDEAS home Printed from https://ideas.repec.org/p/war/wpaper/2015-36.html
   My bibliography  Save this paper

Utilizing the Discrete Choice Experiment Approach for Designing a Socially Efficient Cultural Policy: The case of municipal theaters in Warsaw

Author

Listed:
  • Aleksandra Wiśniewska

    (Faculty of Economic Sciences, University of Warsaw)

  • Mikołaj Czajkowski

    (Faculty of Economic Sciences, University of Warsaw)

Abstract

While public support for culture, and performing arts in particular has become a less self-evident privilege all over Europe than in the past, the economic evidence for benefits a society gains from those goods has become essential for both of the following: scientific research in the area of cultural economics and cultural policy. Although the non-market valuation has been employed as a tool for measuring social benefits generated by cultural resources, the budget constraint has not been considered in most studies regarding the performing arts. Due to that constraint, the crucial question that decision-makers have to answer is then not “whether to finance” or “how big the support should be”, but rather “how to allocate scarce resources”. The aim of our study is to investigate socially preferred ways of allocating public resources in the context of the types of performances offered by municipal theaters in Warsaw. The problem investigated is a current issue for local policy-making, but in a broader sense, it illustrates how state-of-the-art stated preference methods could be employed to support cultural policy. We find that inhabitants of Warsaw assign positive value to the broader accessibility of municipal theaters, and their willingness to pay for making the theaters a truly public good (by introducing a program of highly discounted tickets) exceeds the costs of such a policy. However, we also find that the cost-benefit relationship varies across theaters with different types of plays in their repertories. Our results imply a different level of socially efficient support for experimental, drama, children’s and entertainment theaters.

Suggested Citation

  • Aleksandra Wiśniewska & Mikołaj Czajkowski, 2015. "Utilizing the Discrete Choice Experiment Approach for Designing a Socially Efficient Cultural Policy: The case of municipal theaters in Warsaw," Working Papers 2015-36, Faculty of Economic Sciences, University of Warsaw.
  • Handle: RePEc:war:wpaper:2015-36
    as

    Download full text from publisher

    File URL: http://www.wne.uw.edu.pl/index.php/download_file/2099/
    File Function: First version, 2015
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kristien Werck & Bruno Heyndels, 2007. "Programmatic choices and the demand for theatre: the case of Flemish theatres," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 31(1), pages 25-41, March.
    2. Trine Hansen, 1997. "The Willingness-to-Pay for the Royal Theatre in Copenhagen as a Public Good," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 21(1), pages 1-28, March.
    3. Scarpa, Riccardo & Rose, John M., 2008. "Design efficiency for non-market valuation with choice modelling: how to measure it, what to report and why," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), pages 1-30.
    4. Towse,Ruth, 2010. "A Textbook of Cultural Economics," Cambridge Books, Cambridge University Press, number 9780521888721, June.
    5. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555.
    6. Victor Ginsburgh & David Throsby, 2006. "Handbook of the economics of art and culture," ULB Institutional Repository 2013/1673, ULB -- Universite Libre de Bruxelles.
    7. Daniel Urrutiaguer, 2002. "Quality Judgements and Demand for French Public Theatre," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 26(3), pages 185-202, August.
    8. Mazzanti, Massimiliano, 2003. "Valuing cultural heritage in a multi-attribute framework microeconomic perspectives and policy implications," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(5), pages 549-569, November.
    9. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
    10. José Grisolía & Kenneth Willis, 2012. "A latent class model of theatre demand," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 36(2), pages 113-139, May.
    11. Edward Morey & Kathleen Greer Rossmann, 2003. "Using Stated-Preference Questions to Investigate Variations in Willingness to Pay for Preserving Marble Monuments: Classic Heterogeneity, Random Parameters, and Mixture Models," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 27(3), pages 215-229, November.
    12. Forrest, David & Grime, Keith & Woods, Robert, 2000. "Is It Worth Subsidising Regional Repertory Theatre?," Oxford Economic Papers, Oxford University Press, vol. 52(2), pages 381-397, April.
    13. Adam Finn & Stuart McFadyen & Colin Hoskins, 2003. "Valuing the Canadian Broadcasting Corporation," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 27(3), pages 177-192, November.
    14. K. Willis & J. Snowball, 2009. "Investigating how the attributes of live theatre productions influence consumption choices using conjoint analysis: the example of the National Arts Festival, South Africa," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 33(3), pages 167-183, August.
    15. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, October.
    16. Douglas Noonan, 2003. "Contingent Valuation and Cultural Resources: A Meta-Analytic Review of the Literature," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 27(3), pages 159-176, November.
    17. V.A. Ginsburgh & D. Throsby (ed.), 2006. "Handbook of the Economics of Art and Culture," Handbook of the Economics of Art and Culture, Elsevier, edition 1, volume 1, number 1, December.
    18. Ståle Navrud & Richard C. Ready (ed.), 2002. "Valuing Cultural Heritage," Books, Edward Elgar Publishing, number 1759.
    19. Choi, Andy S. & Ritchie, Brent W. & Papandrea, Franco & Bennett, Jeff, 2010. "Economic valuation of cultural heritage sites: A choice modeling approach," Tourism Management, Elsevier, vol. 31(2), pages 213-220.
    20. Jonathan Corning & Armando Levy, 2002. "Demand for Live Theater with Market Segmentation and Seasonality," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 26(3), pages 217-235, August.
    21. Franco Papandrea, 1999. "Willingness to Pay for Domestic Television Programming," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 23(3), pages 147-164, August.
    22. John Whitehead & Suzanne Finney, 2003. "Willingness to Pay for Submerged Maritime Cultural Resources," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 27(3), pages 231-240, November.
    23. Towse,Ruth, 2010. "A Textbook of Cultural Economics," Cambridge Books, Cambridge University Press, number 9780521717021, June.
    24. K. Willis & J. Snowball & C. Wymer & José Grisolía, 2012. "A count data travel cost model of theatre demand using aggregate theatre booking data," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 36(2), pages 91-112, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wiśniewska Aleksandra, 2019. "Quality attributes in the non-market stated-preference based valuation of cultural goods," Central European Economic Journal, Sciendo, vol. 6(53), pages 132-150, January.
    2. Aleksandra Wiśniewska & Wiktor Budziński & Mikołaj Czajkowski, 2018. "Publicly funded cultural institutions – a comparative economic valuation study," Working Papers 2018-22, Faculty of Economic Sciences, University of Warsaw.
    3. Aleksandra Wiśniewska & Wiktor Budziński & Mikołaj Czajkowski, 2020. "An economic valuation of access to cultural institutions: museums, theatres, and cinemas," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 44(4), pages 563-587, December.
    4. Aleksandra Wiśniewska, 2019. "‘Quality food’ for cultural policies. Quality attributes in the non-market stated-preference based valuation of cultural goods," Working Papers 2019-03, Faculty of Economic Sciences, University of Warsaw.
    5. José Grisolía & Kenneth Willis, 2012. "A latent class model of theatre demand," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 36(2), pages 113-139, May.
    6. Junlong Wu & Keshen Jiang & Chaoqing Yuan, 2019. "Determinants of demand for traditional Chinese opera," Empirical Economics, Springer, vol. 57(6), pages 2129-2148, December.
    7. David Throsby & Anita Zednik & Jorge E. Araña, 2021. "Public preferences for heritage conservation strategies: a choice modelling approach," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 45(3), pages 333-358, September.
    8. Boter, Jaap & Rouwendal, Jan & Wedel, Michel, 2004. "Employing Travel Costs to Compare the Use Value of Competing Cultural Organizations," Serie Research Memoranda 0011, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    9. Jaap Boter & Jan Rouwendal & Michel Wedel, 2005. "Employing Travel Time to Compare the Value of Competing Cultural Organizations," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 29(1), pages 19-33, February.
    10. Choi, Andy S. & Ritchie, Brent W. & Papandrea, Franco & Bennett, Jeff, 2010. "Economic valuation of cultural heritage sites: A choice modeling approach," Tourism Management, Elsevier, vol. 31(2), pages 213-220.
    11. Aleksandra Wiśniewska & Ewa Zawojska & Andrea Baldin & Joanna Rachubik, 2023. "Reliability of international benefit transfer in cultural economics: Non-market valuation of theater in Denmark and Poland," Working Papers 2023-19, Faculty of Economic Sciences, University of Warsaw.
    12. 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.
    13. van der Ploeg, Frederick, 2006. "The Making of Cultural Policy: A European Perspective," Handbook of the Economics of Art and Culture, in: V.A. Ginsburgh & D. Throsby (ed.), Handbook of the Economics of Art and Culture, edition 1, volume 1, chapter 34, pages 1183-1221, Elsevier.
    14. Czajkowski, Mikołaj & Vossler, Christian A. & Budziński, Wiktor & Wiśniewska, Aleksandra & Zawojska, Ewa, 2017. "Addressing empirical challenges related to the incentive compatibility of stated preferences methods," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 47-63.
    15. Figini, Paolo & Vici, Laura, 2012. "Off-season tourists and the cultural offer of a mass-tourism destination: The case of Rimini," Tourism Management, Elsevier, vol. 33(4), pages 825-839.
    16. José M. Grisolía & Kenneth G. Willis, 2016. "Consumer choice of theatrical productions: a combined revealed preference–stated preference approach," Empirical Economics, Springer, vol. 50(3), pages 933-957, May.
    17. Wright, William C.C. & Eppink, Florian V., 2016. "Drivers of heritage value: A meta-analysis of monetary valuation studies of cultural heritage," Ecological Economics, Elsevier, vol. 130(C), pages 277-284.
    18. Gabriel Ahlfeldt & Kristoffer Möller & Sevrin Waights & Nicolai Wendland, 2012. "On prisoner's dilemmas and gilded cages: The economics of heritage preservation," ERSA conference papers ersa12p783, European Regional Science Association.
    19. Alina R. Buzanakova & Evgeniy M. Ozhegov, 2016. "Demand for Performing Arts: The Effect of Unobserved Quality on Price Elasticity," HSE Working papers WP BRP 156/EC/2016, National Research University Higher School of Economics.
    20. Anna Alberini & Alberto Longo & Patrizia Riganti, 2006. "Using Surveys to Compare the Public’s and Decisionmakers’ Preferences for Urban Regeneration: The Venice Arsenale," Working Papers 2006.137, Fondazione Eni Enrico Mattei.

    More about this item

    Keywords

    cultural economics; theater; non-market valuation; discrete choice experiment; public expenditures;
    All these keywords.

    JEL classification:

    • Z1 - Other Special Topics - - Cultural Economics
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:war:wpaper:2015-36. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marcin Bąba (email available below). General contact details of provider: https://edirc.repec.org/data/fesuwpl.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.