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On the Public Provision of the Performing Arts

  • Traub, Stefan
  • Missong, Martin

In this paper, we present a model in which the performing arts are modelled as congestible public goods. In accordance with empirical evidence, the production of seat capacity is assumed to be subject to fixed costs. We estimate the parameters of the model?s demand and cost functions using German data. Using these estimates in a subsequent social choice analysis, we show that the current situation in the German performing arts sector is best described by a directorship that under the influence of a selfish theater lobby maximizes only the welfare of the spectators. Such an equilibrium, characterized by too low ticket prices and too large capacity, is most likely to establish if citizens have a very positive ex ante notion of the performing arts.

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Paper provided by Christian-Albrechts-University of Kiel, Department of Economics in its series Economics Working Papers with number 2003,02 [rev.].

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Date of creation: 2003
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Handle: RePEc:zbw:cauewp:2850
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  1. Richard Arnott & Marvin Kraus, 2003. "Transport Economics," Boston College Working Papers in Economics 553, Boston College Department of Economics.
  2. Oakland, William H., 1972. "Congestion, public goods and welfare," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 339-357, November.
  3. Sandmo, Agnar, 1973. "Public Goods and the Technology of Consumption," Review of Economic Studies, Wiley Blackwell, vol. 40(4), pages 517-28, October.
  4. Abbe-Decarroux, Francois, 1994. "The perception of quality and the demand for services : Empirical application to the performing arts," Journal of Economic Behavior & Organization, Elsevier, vol. 23(1), pages 99-107, January.
  5. Oates, Wallace E., 1988. "On the measurement of congestion in the provision of local public goods," Journal of Urban Economics, Elsevier, vol. 24(1), pages 85-94, July.
  6. Blaug, Mark, 2001. " Where Are We Now on Cultural Economics?," Journal of Economic Surveys, Wiley Blackwell, vol. 15(2), pages 123-43, April.
  7. Traub, Stefan & Missong, Martin, 2003. "On the Public Provision of the Performing Arts," Economics Working Papers 2003,02 [rev.], Christian-Albrechts-University of Kiel, Department of Economics.
  8. Small, K.A. & Gomez-Ibanez, J.A., 1996. "Urban Transportation," Papers 95-96-4, California Irvine - School of Social Sciences.
  9. Edelson, Noel M, 1971. "Congestion Tolls Under Monopoly," American Economic Review, American Economic Association, vol. 61(5), pages 873-82, December.
  10. Mills, David E, 1981. "Ownership Arrangements and Congestion-Prone Facilities," American Economic Review, American Economic Association, vol. 71(3), pages 493-502, June.
  11. Reiter, Michael & Weichenrieder, Alfons J., 1999. "Public Goods, Club Goods, and the Measurement of Crowding," Journal of Urban Economics, Elsevier, vol. 46(1), pages 69-79, July.
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