nep-tur New Economics Papers
on Tourism Economics
Issue of 2016‒06‒14
one paper chosen by
Laura Vici
Università di Bologna

  1. Private ownership of a cultural event: Do attendees perceive it as a risky lottery? By Giuseppe Attanasi; Hana Cosic; Francesco Passarelli; Giulia Urso

  1. By: Giuseppe Attanasi; Hana Cosic; Francesco Passarelli; Giulia Urso
    Abstract: In this paper, we empirically explore attendees’ preferences for the privatization of cultural events. Our assumption is that attendes may interpret privatization as a risky lottery: while it increases the availability of financial resources, it boosts the commercial dimension of the event thereby dissipating its traditional and cultural connotation. We conducted around 7,000 interviews during an important cultural festival in southern Italy (250,000 over three years). We asked attendees to express their preferences for the entry of private capital in the event. We find that, while attendees being sensitive to the quality of the event are favorable to privatization, risk-averse attendees are less willing to accept private ownership of the festival. The latter negatively depends on the attendees’ sensitivity to the traditional/cultural aspects of the event. Furthermore, among festival attendees, cultural tourists are less willing to accept private firms’ management and financing of the event. Our findings provide insights into consumers’ stated preferences on tourism management issues.
    Keywords: Cultural event; festival ownership; cultural tourism; risk aversion; willingness to pay; instantaneous social capital.
    JEL: A13 D81 G32 Z10
    Date: 2016

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