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Estimating demand for opera using sales system data: the case of Finnish National Opera

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  • Jani-Petri Laamanen

Abstract

Using detailed data for 2001–2009 from the sales system of the Finnish National Opera, we estimate the determinants of demand for opera tickets. We find that operas in their premiere season are more popular than reprises. Demand is lower for classical operas and higher for domestic operas and for performances with a famous opera singer. Press reviews and the overall popularity of the opera piece have the expected effects. There is also evidence of seasonal effects. By excluding temporarily discounted tickets, controlling for performance characteristics and quality and using a method that takes into account capacity constraints, we are able to credibly estimate the price elasticity of demand. The overall elasticity is close to unity: on average, a 1 % increase in prices would result in 1.16 % decrease in demand. Copyright Springer Science+Business Media New York 2013

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  • Jani-Petri Laamanen, 2013. "Estimating demand for opera using sales system data: the case of Finnish National Opera," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 37(4), pages 417-432, November.
    • Handle: RePEc:kap:jculte:v:37:y:2013:i:4:p:417-432
    DOI: 10.1007/s10824-012-9190-6
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    3. Evgeniy M. Ozhegov & Alina Ozhegova, 2018. "Segmentation of Theatre Audiences: A Latent Class Approach for Combined Data," HSE Working papers WP BRP 198/EC/2018, National Research University Higher School of Economics.
    4. Alina Ozhegova & Evgeniy M. Ozhegov, 2018. "Heterogeneity in demand for performances and seats in the theatre," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(3), pages 131-145, June.
    5. John S. Jatta & Krishna Kumar Krishnan, 2016. "An empirical assessment of a univariate time series for demand planning in a demand-driven supply chain," International Journal of Business Forecasting and Marketing Intelligence, Inderscience Enterprises Ltd, vol. 2(3), pages 269-290.
    6. Alina R. Buzanakova & Evgeniy M. Ozhegov, 2016. "Demand for Performing Arts: The Effect of Unobserved Quality on Price Elasticity," HSE Working papers WP BRP 156/EC/2016, National Research University Higher School of Economics.
    7. Junlong Wu & Keshen Jiang & Chaoqing Yuan, 2019. "Determinants of demand for traditional Chinese opera," Empirical Economics, Springer, vol. 57(6), pages 2129-2148, December.
    8. Yang, Chengyu & Wang, Xupeng, 2023. "Income and cultural consumption in China: A theoretical analysis and a regional empirical evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 216(C), pages 102-123.
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    More about this item

    Keywords

    Demand estimation; Opera; Performing arts; Z11; L32; L82;
    All these keywords.

    JEL classification:

    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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