Quality Investment and Price Formation in the Performing Arts Sector: A Spatial Analysis
In this paper, we present a spatial model of the public provision of the performing arts. Agents behave boundedly rational. Art directors set performance quality according to their aspiration levels. While taking into account the spatial distribution of the population, administrative directors in calculating ticket prices ignore that they compete with neighboring performing arts organization (PAOs) for audience. The model is tested empirically using a spatial autoregressive (SAR) model with a complete data set of German PAOs and cities. Our data support the model and help to explain the size and distribution of losses in the public performing arts sector.
|Date of creation:||2005|
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- Stefan Tobias, 2004. "Quality in the Performing Arts: Aggregating and Rationalizing Expert Opinion," Journal of Cultural Economics, Springer, vol. 28(2), pages 109-124, May.
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- Blaug, Mark, 2001. " Where Are We Now on Cultural Economics?," Journal of Economic Surveys, Wiley Blackwell, vol. 15(2), pages 123-43, April.
- Throsby, David, 1994. "The Production and Consumption of the Arts: A View of Cultural Economics," Journal of Economic Literature, American Economic Association, vol. 32(1), pages 1-29, March.
- Henry Hansmann, 1981. "Nonprofit Enterprise in the Performing Arts," Bell Journal of Economics, The RAND Corporation, vol. 12(2), pages 341-361, Autumn.
- Günther Schulze & Anselm Rose, 1998. "Public Orchestra Funding in Germany – An Empirical Investigation," Journal of Cultural Economics, Springer, vol. 22(4), pages 227-247, December.
- Hohaus, Bolko & Konrad, Kai A. & Thum, Marcel, 1994. "Too much conformity? : A hotelling model of local public goods supply," Economics Letters, Elsevier, vol. 44(3), pages 295-299.
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