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Modelling preference heterogeneity for theatre tickets: a discrete choice modelling approach on Royal Danish Theatre booking data

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  • Andrea Baldin
  • Trine Bille

Abstract

This article analyses the behavioural choice for theatre tickets using a rich data set for 2010–2013 from the sale system of the Royal Danish National Theatre. A consumer who decides to attend a theatre production faces multiple sources of price variation that involves a choice by the consumer among different ticket alternatives. Three modelling approaches are proposed in order to model ticket purchases: conditional logit with socio-demographic characteristics, nested logit and latent class. These models allow us explicitly to take into account consumers’ preference heterogeneity with respect to the attributes associated with each ticket alternative (quality of the seat and day of the performance). In addition, the willingness to pay of choice attributes is estimated. Final results suggest that customers’ characteristics in terms of age and frequency of theatre attendance characterize different patterns of behaviour in the choice of theatre ticket.

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  • Andrea Baldin & Trine Bille, 2018. "Modelling preference heterogeneity for theatre tickets: a discrete choice modelling approach on Royal Danish Theatre booking data," Applied Economics, Taylor & Francis Journals, vol. 50(5), pages 545-558, January.
    • Handle: RePEc:taf:applec:v:50:y:2018:i:5:p:545-558
    DOI: 10.1080/00036846.2017.1335386
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    Cited by:

    1. Danny Blom & Rudi Pendavingh & Frits Spieksma, 2022. "Filling a Theater During the COVID-19 Pandemic," Interfaces, INFORMS, vol. 52(6), pages 473-484, November.
    2. Aleksandra Wiśniewska & Ewa Zawojska & Andrea Baldin & Joanna Rachubik, 2023. "Reliability of international benefit transfer in cultural economics: Non-market valuation of theater in Denmark and Poland," Working Papers 2023-19, Faculty of Economic Sciences, University of Warsaw.
    3. Aleksandra Wiśniewska & Wiktor Budziński & Mikołaj Czajkowski, 2018. "Publicly funded cultural institutions – a comparative economic valuation study," Working Papers 2018-22, Faculty of Economic Sciences, University of Warsaw.
    4. Dylan Thompson, 2024. "Front row or backstage? Evidence on concert ticket preferences from a discrete choice experiment," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 48(3), pages 463-491, September.
    5. McKenzie, Jordi & Crosby, Paul & Cox, Joe & Collins, Alan, 2019. "Experimental evidence on demand for “on-demand” entertainment," Journal of Economic Behavior & Organization, Elsevier, vol. 161(C), pages 98-113.
    6. Andrea Baldin & Trine Bille & Andrea Ellero & Daniela Favaretto, 2018. "Revenue and attendance simultaneous optimization in performing arts organizations," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 42(4), pages 677-700, November.
    7. Andrea Baldin & Trine Bille & Andrea Ellero & Daniela Favaretto, 2016. "Multiobjective optimization model for pricing and seat allocation problem in non profit performing arts organization," Working Papers 20, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.

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