| By: |
Ricardo Cavazos (Institute of Business and Economic Research. Haas School of Business,University of California at Berkeley);
Felipe Vásquez (Departamento de Economía, Universidad de Concepción.);
Jeffrey T. LaFrance (School of Economic Sciences,Washington State University) |
| Abstract: |
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 |
| Date: |
2009 |
| URL: |
http://d.repec.org/n?u=RePEc:cnc:wpaper:06-2009&r=cul |