Factors that influence programming decisions of US symphony orchestras

Program decisions by symphony orchestra management are influenced by various factors. To examine these factors, we create an objective index of the propensity of a symphony orchestra to perform the standard repertoire. We use regression analysis to examine factors that influence programming decisions of 64 US symphony orchestras in 2006–2007, including public and private sources of funding. We find that increased funding from ticket sales, endowments, and local government increases the likelihood that an orchestra will perform nonstandard repertoire. In addition, the results suggest that a symphony orchestra’s music director does not have a significant impact on the degree of program conventionality.     

Tourism flows and the demand for regional and city theatres in Austria

This paper investigates the impact of tourism flows on demand for large regional and city theatres in Austria over the period from 1972 to 2011 (39 years). The results are obtained by applying an aggregated theatre demand function for both residents and tourists. The elasticity of theatre attendance in response to tourism is estimated along with other standard demand variables such as ticket price and income. The quality factors and theatre-specific effects are also included. The tourism flows variables are derived using detailed data set on tourist arrivals and their overnight counts, and they are also split between domestic and foreign tourists. To measure the impact of tourism flows on theatre demand, three alternative theatre markets specifications are considered. The total elasticity of attendance per capita in response to tourism is estimated between 15 and 20 %, indicating that increasing the number of arrivals by two tourists per resident in the relevant market would generate an increase in theatre attendance by 581–680 thousand visitors per year. The role of tourism flows is found to be particularly important for attendance at opera, operetta and musicals as opposed to attendance at drama performances. The analysis also reveals that foreign, non-German tourists have a positive impact on theatre attendance, whereas domestic tourists do not contribute significantly to higher demand for Austrian theatres.     

The efficiency of German public theaters: a stochastic frontier analysis approach

In recent years the economic performance of public non-profit sectors such as cultural services has become an interesting economic issue. This is due to the high dependence of cultural institutions on public funding on the one hand and the increasing cost-pressure on public budgets on the other hand. In order to achieve an efficient, cost-minimizing resource allocation public authorities who decide on the distribution of public budgets need reliable performance indicators. Against this background, this paper analyzes the efficiency of German public theaters for the seasons 1991/1992–2005/2006. Using a stochastic frontier analysis approach, we test whether the assumption of cost-minimizing behavior is reliable in this sector. Moreover, several panel data models that differ in their ability to account for unobserved heterogeneity are applied to evaluate the impact of unobserved heterogeneity on the efficiency estimates. The results indicate that the cost-minimizing assumption cannot be maintained. Consequently, an efficiency analysis based on a cost function approach seems inappropriate in the case of German public theaters. Further, we find a considerable unobserved heterogeneity across the theaters, which causes a significant variation in the models’ efficiency estimates. This implies that failing to account for unobserved heterogeneity leads to biased efficiency values. Overall, our results suggest that there is still space for improvement in the employment of resources in the sector.     

The interaction between artists’ professional training and employment in the field of Finnish theatre

This paper deals with the effects of formal training on artists employment situation in the 1990s. The empirical data is based on a survey of theatre and dance artists which was done by the Arts Council of Finland in co-operation with the Finnish Theatre Academy. The survey studied current employment status of theatre artists as well as the effects of formal training on their employment, working conditions and salary. The results of the survey have been published in Finnish by the Arts Council (Karhunen, 1994).     

Rational addiction and cultural goods: the case of the Italian theatregoer

This paper tests whether demand for theatre in Italy is consistent with the model of rational addiction presented in Becker and Murphy (J Polit Econ 96(4):675–700, 1988). Data from a novel 34-year panel on regional annual theatre attendance are used to estimate market demand. Four models are applied to investigate the demand function, and all of these also include per capita income and other control variables as regressors. The first two models are estimated to check whether theatregoers are myopically addicted to theatre. The results suggest that the theatre is an addictive good because past consumption (and prices) significantly raises the marginal utility of current consumption. The third model tests the rational addiction hypothesis, which assumes that future attendance also influences current attendance, whilst past and future prices influence current attendance only indirectly through their impact on past and future attendances. However, our most highly specified model, introducing past and future prices, demonstrates that Italian theatregoers are not myopic but fully rational as outlined in Becker and Murphy (1988). The results demonstrate that the rational addiction hypothesis is applicable not only to “harmful” addictions such as alcohol, cigarettes and drug consumption, but also to “beneficial” addictions, such as theatre attendance. This result has important policy implications because theatre is one of the most subsidised performing arts in Italy; if theatregoers are fully rational, policy makers can influence theatre attendance using alternative policy instruments (price and income), thereby reducing government expenditure on theatre subsidies.     

Economic impact of the arts: Theatre festivals in small Ontario communities

Conclusions This paper has demonstrated that visitors to professional theatre companies located in towns and villages of southern Ontario contribute to the economic well-being of the local economy. Furthermore, it has been documented that while all communities receive some monetary benefits, spatial variations are found to exist. These discrepancies are a function of differences in the average expenditures of non-local residents and the total number of visitors attending the theatre event. As expected, average expenditures appear to be highest in communities supporting a large commercial sector which are capable of sustaining a touris market. Moreover, the number of visitors attending a theatre event appears to be greatest in small communities supporting an established theratre company.     

On the role of cultural participation in tourism destination performance: an assessment using robust conditional efficiency approach

The relationship between culture and tourism has been widely investigated from different perspectives. A large strand of literature studies the role of cultural heritage to attract tourists, while a rich bulk of studies on cultural participation investigates the impact of tourism flows on the demand for culture. Another aspect worth investigating relates to the link between cultural participation and the performance of tourism destinations (TDs), as a higher cultural participation in an area could boost the performance in the management of tourism resources. However, so far, this issue has been disregarded in the literature, and this paper aims at filling this gap. Specifically, it studies the effect of cultural participation on TDs’ performance using a conditional efficiency approach that ensures robust inference on the role of environmental factors. We employ data on the Italian regions for the period 2004–2010, and we explore the role of cultural participation for tourism by using several indicators. Our findings offer empirical support to the positive role of cultural participation and, thus, suggest that public cultural policies might also boost the efficiency of the tourism sector.     

Spatial competition and market share: an application to motion pictures

This paper presents an empirical assessment of movie-theatre attendance in two major metropolitan markets and provides strong support for the importance of spatial characteristics in determining attendance. We consider the hypothesis that attendance at a particular movie theatre reflects a tension between two effects: a negative competition effect and a positive agglomeration effect. We find evidence that the competition effect dominates. Further, we identify a pattern of systematic spatial decay in the impact of this effect on demand.     

Effects of the “Gangnam Style Syndrome” on the South Korean stock market

This study attempts to answer two questions. First, can a single cultural event impact the stock prices of a wide range of companies and sectors? Second, was the positive stock market response in the information technology (IT) sector as well as performing arts sector significant? To answer these questions, we examine whether a hit pop single, “Gangnam Style” by Park Jae-Sang in 2012, affected related sectors of the Korean stock market and whether market reactions went beyond the stock price of the singer’s agency to affect those of other firms. We use an event study approach. The results show two notable empirical findings. First, although the findings indicating abnormal returns and cumulative abnormal returns appear mixed, the overall results imply that the unprecedented worldwide hit single by the South Korean singer positively affected the Recreation & Culture and Digital Content sectors. In other words, the market interpreted the event as good news, with shareholders expecting positive effects on the related sectors. Second, a positive stock market response was observed in the IT sector as well.     

A count data travel cost model of theatre demand using aggregate theatre booking data

Theatres have a market bounded by the distance theatregoers are willing to travel to see shows and productions. This paper uses count data models (Poisson regression and negative binomial models) to investigate the determinants of attendance at a regional theatre in England. It uses booking data for 29 theatrical productions supplied by the theatre, and matches this, using postcodes, with census socio-economic information on household characteristics. Socio-economic and travel cost (distance) are used to explore theatregoers attendance, and also to estimate consumer surplus, and to assess whether consumer surplus on ticket sales exceeds the annual government subsidy to the theatre.     

A latent class model of theatre demand

This paper investigates market segments for theatre demand using a latent class model. The model is applied using data from a stated preference survey implemented in a regional theatre in England. Results allow three classes of theatregoers to be identified. The largest and ‘main class’ comprises mainly affluent people who show a strong preference for main theatre venues, consider reviews of the productions, whether the author is known, and like all types of shows. The second is a ‘popular class’, exhibiting the smallest willingness to pay and manifesting a strong preference for comedies, paying little attention to venues and disliking more sophisticated shows. The third is an ‘intellectual class’ of theatre goers, who exhibit the maximum willingness to pay, and show a strong interest for drama and adaptation of productions, and more independent aesthetic judgement. The study shows the usefulness of latent class models in identifying market segments, a procedure that is relevant to policy makers and theatre managers in setting prices, identifying different kinds of consumers to increase people’s engagement with theatre, and undertaking social analysis of performing arts.     

Cost Structure and Product Mix of Local Public Theatres

The purpose of this study is to analyse the cost structure of the Italian local public theatres in order to assess economies of scale and scope and the desirability of the reform of the subsidy system. A translog multiproduct cost function was estimated using panel data for a sample of 28 theatres over the period 1991–1993. The results indicate the existence of scale and scope economies for most output levels. In addition, the estimated marginal costs for the two outputs indicate that, ceteris paribus, an additional performance conducted inside or outside the theatre by the resident theatre group is generally more expensive than an additional performance conducted inside the theatre by external theatre groups. These results call for a reform of the public subsidy system which do not promote the proliferation, but the interchange and the diffusion of a limited number of high quality shows. This revised version was published online in August 2006 with corrections to the Cover Date.     

Cultural determinants of economic growth: Theory and evidence

Shortcomings of neoclassical growth theory and growth accounting are viewed as a challenge for cultural economics. Recently, new growth theory has introduced several growth determinants and has closed the gap between theoretical and empirical research. Whether this development leaves space for cultural determinants in explaining economic growth is in the center of this paper. The theoretical analysis shows how an endogenous growth model can be used to explain the impact on economic growth of cultural determinants. The empirical part uses indices from cross-cultural studies to extend recent cross-country growth regressions. Among other Hofstedes uncertainty avoidance index is shown to be significantly correlated with economic growth.Discussion paper presented at the 9th international conference of the Association for Cultural Economics, Boston, May 8–11, 1996.     

The Training of “Triple Helix Workers”? Doctoral Students in University–Industry–Government Collaborations

Changes in knowledge production, increasing interaction between government, universities and industry, and changes in labor markets for doctoral degree holders are forces that have spurred a debate about the organization of doctoral education and the competencies graduates need to master to work as scientists and researchers in a triple helix research context. Recent policy also has supported a redefinition of researcher training with increasing focus on broader skills and relevance for careers outside the university sector. Consequently, it is pertinent to investigate current changes in doctoral education and researcher training. Particularly further knowledge about university–industry collaboration as a context for researcher training is required. With this in mind, this study provides empirical illustrations of how research training carried out in collaborative research contexts is experienced by doctoral students, and offers some insight into antecedent and process factors that are central in shaping PhD students’ research and training experience in collaborative research contexts. Based on the empirical data and a review of existing literature, suggestions for further research are made.     

A microeconometric study of theatre demand

We develop a model of theatre demand with learning by consuming, and test some of its implications on a large random sample of theatregoers and non-theatregoers. This seems to be the most comprehensive econometric study of demand for the theatre from individual data. We hypothesize that each time the consumer watches a play, he experiences a degree of pleasant or unpleasant surprise on the basis of which he will revise his future expectations of his own taste. The learning phase is likely to be unusually long for highly differentiated cultural goods. Our set of data contains unique information about the full price and the fixed cost of theatre, the objective quality of the outing, past experience of and taste for the theatre, and consumption of substitute leisure activities such as reading, television and cinema. Our methodology and data enable us to infer price elasticity on survey data from knowledge of theatregoing experience and taste. After controlling for many variables, we conclude that demand for the theatre is price-elastic, which contradicts previous estimates on aggregate time-series data. Moreover, we estimate demand conditional on past attendance after controlling for selectivity bias. Satisfaction reported by consumers after the last play is also estimated and interpreted as an ordinal conditional choice.     

Perfect reproductions of works of art: Substitutes or heresy?

The paper attempts an empirical investigation into a number of subjective determinants used in the evaluation of a work of art. Individuals' decisions to buy works of art seem based predominantly on aesthetic benefits. This is true for original pieces of art as well as for reproductions, i.e. there seems to be some substitutability between both kinds of objects. Major differences in the evaluation of originals and reproductions arise with respect to the secondary characteristics of art objects, not specifically with regard to the work of art itself. With respect to the willingness to pay (wtp) for a reproduction, a major impact seems to be whether or not the original work exists, i.e. a rationing effect seems to arise. The wtp for a reproduction also seems to depend on whether or not an individual earns his/her income in the arts sector.     

Product differentiation and film-programming choice: do first-run movie theatres show the same films?

We present an empirical analysis of product differentiation using a new panel data set on film-programming choice in a major U.S. metropolitan motion-pictures exhibition market. Using these data, we compute two measures of product similarity, which allow us to investigate the determinants of strategic product differentiation in a multi-characteristics space. Our evidence is consistent with the idea that the degree of product differentiation between theatre pairs reflects a balance between strategic concerns and contractual constraints. Similarity in one dimension is offset by differentiation in others. Our results further suggest that the degree of product differentiation is negatively related to market size. Finally, we find that ownership matters: theatres under common ownership make more similar programming choices than theatres with different owners.     

Programmatic choices and the demand for theatre: the case of Flemish theatres

Theatre experts generally agree that the Flemish theatre has flourished artistically over the period 1980–2000. Attendance, on the other hand, has declined significantly. Following Lancaster’s characteristics approach, we identify several output characteristics of individual theatre productions. Using a panel of 59 Flemish theatres, we examine the impact on demand of both these output characteristics and of traditional determinants such as own price, income and the price of substitutes. Differences in the relevant geographical market for touring and non-touring theatres are considered. We find that the nature of the artistic output affects demand. Theatregoers prefer large productions (in terms of cast size), plays by Dutch-speaking playwrights and revivals of old productions. Own price and consumer income have the expected negative and positive effects on attendance. Observed trends toward a decreasing proportion of new plays, an increasing presence of plays by Dutch-speaking playwrights, and increasing consumer income had a stimulating effect on attendance. These trends have been offset, however, by trends toward smaller cast sizes and higher ticket prices as well as by unobserved factors captured by time dummies. The net result has been a considerable drop in attendance.

Investigating how the attributes of live theatre productions influence consumption choices using conjoint analysis: the example of the National Arts Festival,South Africa

While there is a fair amount of work on determinants of demand for the live performing arts, results have often been contradictory with little explanatory power. This may be because of the difficulty in describing the attributes of a performance, particularly in terms of its quality, and the heterogeneity of consumer preferences. This article uses conjoint analysis, also called choice experiments, to investigate the impact of the attributes of live theatre performances on demand, using data collected from 483 randomly chosen attenders at live theatre performances at the 2008 South African National Arts Festival. Attributes include the type of cast (professional, semi-professional or amateur), reputation of the producer/director, the context or setting, production type and ticket price of the show. Results largely support the a priori expectations based on the results of other demand studies. For example, it is found that the age of consumers affects the type of show chosen, that utility and willingness to pay increase for shows with professional and semi-professional casts and that 93% of the potential audience prefer shows with a South African context. It is concluded that the method could prove useful to both event organisers and policy makers, especially where the goal is to broaden access to the arts.

Full-income and price elasticities of demand for German public theatre

This article provides estimates of price and income elasticities of demand for German public theatre, using a large and reliable data set for 178 theatres over 40 years (1965–2004). It is posited that the consumption of the performing arts is a time-intensive activity for which both a theatre ticket and leisure time are necessary. Thus, the impacts of ‘full-income’ (‘leisure time income’ added to disposable income) and the price of leisure time on theatre attendance are examined. The findings indicate that the demand for the performing arts is own-price inelastic. The disposable income elasticity is significant, positive and equals approximately one. In contrast, the full-income elasticity is well above one and greater than usual income elasticity indicating that the performing arts are a luxury good when leisure time income is included in the consumer’s budget. The positive full-income effect is, however, offset by the negative price of leisure effect indicating that leisure time is a complement for the performing arts. Additionally, three objective quality characteristics of theatrical productions which can positively influence theatre demand are examined.