The Willingness-to-Pay for the Royal Theatre in Copenhagen as a Public Good

In this paper some of the results of a Contingent Valuation (CV)-Study of the Royal Theatre in Copenhagen, Denmark, are presented. The estimated aggregated willingness-to-pay (WTP) for the Royal Theatre through taxes shows that the Danish population wants to pay at least as much as the theatre receives in public subsidies. The visitors comprise only about 7 per cent of the total population, but the non-users' WTP is quite substantial which is the interesting point. It means that the non-users are willing to pay an option price and that the Royal Theatre has non-use value. This revised version was published online in August 2006 with corrections to the Cover Date.     

Demand for and productivity analysis of Turkish public theater

We estimate a demand function for live theater provided by the General Directorate of State Theaters in Turkey. We show that demand is more elastic in less developed cities, that attendance is not significantly affected by various qualitative variables, and that the government's practice of offering free passes to government officials is an ineffective way of increasing paid attendance. Comedies and musicals both show significantly higher attendance. Having a Turkish author does not significantly affect attendance. Having a known author significantly increases attendance for more developed cities but not for less developed cities. Being the opening season significantly reduces attendance in less developed cities but has no effect in more developed cities. We also present evidence of inefficiency in state theaters in Turkey through a performance of plays equation in which we evaluate the determinants of the number of performances per play.     

Competing Quality Conventions in the French Online Display Advertising Market

This paper builds upon an empirical study of suppliers of online advertising space in France in order to highlight the plurality of quality conventions that organize the activity of market intermediaries. We show that the market is organized around two different quality conventions, the ‘media’ convention and the ‘direct-response’ convention, each equipped with specific efficiency indicators, pricing methods and selling channels. Then we focus on the growing conflict of territory between the two conventions; we analyse the balance of power between the conventions and the arenas where they compete. We observe that the collective action of the defenders of the traditional world is not (yet) sufficient to contain the pervasiveness of the indicators and metrics from the world of direct-response.     

The Demand for Books Estimated by Means of Consumer Survey Data

In this analysis we present some results for book demand (schoolbooks are excluded) in Norway, obtained by means of a three-goods model (books, other cultural goods and non-cultural goods) and survey data for more than 18000 households from the period 1986–1999. Various methods of estimation are used, and they provide, surprisingly unambiguous results. Our hypotheses about the price and income sensitivity of book demand are confirmed. Books turn out to be “luxury” goods. Our calculations do also suggest that they are quite price sensitive and that they are close substitutes to other cultural goods. The results for socio-demographic variables indicate that access to outlets for books, sex and age matter for book demand. Moreover, we find that single persons and households with small children, especially those with children less than 7 years, are frequent book-buyers.     

Demand for Ballet: A Non-Parametric Analysis of the 1995 Royal Ballet Summer Season

Attendance figures for individual seat categories during the 1995 Royal Ballet Summer Season are analysed using a non-parametric median technique. For three out of five categories, demand for full-length ballet turns out to be significantly downward-sloping. The (point) estimates suggest that during the period of observation substantial margins for price cuts existed which would have increased both attendance and revenue.     

Learning-by-Consuming and the Dynamics of the Demand and Prices of Cultural Goods

The major distinctive feature of cultural goods is that consumers must learn how to consume them, implying that preferences should be modelled as intertemporally dependent. The canonical model in the literature uses a habit formation analogy. In this paper, we discuss in detail, though in the simplest setup, a consistent preference structure for that model. Then, we derive the implications for the dynamics of two aggregate equilibrium models, a fixed price model and a flexible price model. The learning-by-consuming behaviour is characterised by a preference structure displaying bounded adjacent complementarity in the demand for the cultural good. This implies that there will be short run complementarity between the stocks of culture and financial wealth and that the adjustment of the demand for cultural goods, or of their relative price, will have some inertia. In the exogenous price model, we find that increases in income will raise the long run demand for cultural goods while increases in the relative price will decrease it. In the endogenous price model, an increase in the supply of cultural goods will imply an initial undershooting of the price of cultural goods followed by an upward transition process. Our results seem to be consistent with the empirical results on the demand for cultural goods and seem to offer an explanation for the Baumol and Bowen paradox.JEL Classification: Z1, E21Earlier versions of this paper have been presented at the 1st Conference of the Sociedade Portuguesa de Investigação em Economia (SPiE, 1997) and at the Xth Conference of the Association for Cultural Economics International, 1998, Barcelona.     

Demand for Live Theater with Market Segmentation and Seasonality

Using performance level box-office receipts from the PacificConservatory of the Performing Arts over eight years, we analyzeperformance-level demand for live theater. The disaggregated data allowsus to estimate demand at a particular venue and to characterize theseasonality of demand for live theater. We examine whether the supply ofshows matches the differentiated tastes of theater-goers at each of thethree locations and the sensitivity of demand to critical reviews andprior attendance.     

Quality in the Performing Arts: Aggregating and Rationalizing Expert Opinion

The article is concerned with the issue of quality in drama, opera, and ballet, respectively. Relying on data from an expert opinion survey and from the statistical yearbook on theatres in Germany, the problem is addressed to what extent quality is linked to certain economic variables. After appropriately aggregating the ordinal expert judgments while controlling for expert-specific standards it is shown that this link is considerably closer for ballet and opera than for drama. Furthermore, in all three art forms positive but decreasing marginal returns of artistic expenses in terms of quality prevail.     

Expert Opinion and Gastronomy: The Recipe for Success

Experts' opinions play an important role in the gastronomic market for the following reasons: information is imperfect and very costly to acquire and quality is, in large part, subjective and consumers need experts to define it. The number of guidebooks currently issued, their success (Michelin: 650,000 sold; GaultMillau: 200,000 sold) and the strong level of correlation generally obtained between prices and ratings or rankings (0.63 on average) for this class of activity illustrate this influence. Without experts, supply and demand would find it difficult to meet.Therefore, identifying the determinants of these evaluations of quality and then estimating their respective impact become relevant. According to the experts, the art of cooking is the only determinant that they take into account when selecting and then evaluating the chefs. For the chefs, the setting also appears to be a determinant and not the least important one.What is the best strategy to become a ``first rate'' chef? Would Alain Ducasse, one of the most famous French chefs, get the same rating in a roadside café as in a luxury restaurant? To answer these questions, a quality equation is estimated using an original database concerning 185 leading French chefs who have been selected in one of the most famous French guidebooks: GaultMillau (2000 edition). The results show that there are two strategies to become a ``first rate'' chef but that the art of cooking prevails over setting. This is in line with the observation that some gourmet restaurants tend to over-invest in luxurious surroundings.     

Media Framing of Terrorism: Implications for Public Opinion,Civil Liberties,and Counterterrorism Policies

Abstract

This study presents experimental findings on the impact of media framing of the 2005 London bombings. A total of 371 American participants were exposed to one of two frames to test their effect on public attitudes towards civil liberties and Muslims, and support for counterterrorism policies. Results show that the “domestic homegrown” frame produces greater increases in fear than the “international” frame. This leads to greater support for restricting civil liberties of Muslims and, under certain circumstances, general feelings of negativity toward Muslims. The study also finds support for the hydraulic effect of framing in that the domestic homegrown frame suppresses party identification in attitude formation.