Quality Investment and Price Formation in the Performing Arts Sector: A Spatial Analysis

Stefan Traub ()

No 2005-16, Economics Working Papers from Christian-Albrechts-University of Kiel, Department of Economics

Abstract: 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.

Keywords: Performing Arts; Local Public Goods; Quality; Spatial Competition; Bounded Rationality (search for similar items in EconPapers)
JEL-codes: H41 R59 Z10 (search for similar items in EconPapers)
Date: 2005
New Economics Papers: this item is included in nep-cul, nep-geo, nep-pbe and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cauewp:3830

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