Quality Effects and the Value of Information on the Demand for Broadway Shows
Ricardo Cavazos-Cepeda (),
Felipe Vásquez Lavín and
Jeffrey LaFrance ()
No 06-2009, Working Papers from Departamento de Economía, Universidad de Concepción
In this paper we estimate a demand curve for Broadway shows and estimate average willingness to pay for information on the quality of the show. The data employed are weekly time series observations on attendance to Broadway performances and individual characteristics of each Broadway show playing between December 1995 and June 2003. Our primary measure of quality is the number of Tony Awards won by each production. We use a discrete choice model which allows us to separate the e¤ect of prices and quality on the shows. attendance and we account for the endogeneity of prices and explicitly model the endogeneity of the outcome of the Tony award. Our results show Broadway theatre demand slopes down and the Tony Awards variable has a positive e¤ect on the shows. shares of occupied space, which turns into a positive willingness to pay for this quality indicator. Our results are robust to the inclusion of several types of .xed e¤ects including show, theatre, yearly, and monthly; di¤erent ways to model the endogeneity of price and the Tony award.
Keywords: Cultural Economics; Quality perception; Demand models (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cul and nep-dcm
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 404 Not Found
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cnc:wpaper:06-2009
Access Statistics for this paper
More papers in Working Papers from Departamento de Economía, Universidad de Concepción Contact information at EDIRC.
Bibliographic data for series maintained by Ronald Sepulveda ().