IDEAS home Printed from https://ideas.repec.org/p/cnc/wpaper/06-2009.html
   My bibliography  Save this paper

Quality Effects and the Value of Information on the Demand for Broadway Shows

Author

Listed:
  • Ricardo Cavazos

    (Institute of Business and Economic Research. Haas School of Business,University of California at Berkeley)

  • Felipe Vásquez

    (Departamento de Economía, Universidad de Concepción.)

  • Jeffrey T. LaFrance

    (School of Economic Sciences,Washington State University)

Abstract

In this paper we estimate a demand curve for Broadway shows and estimate average willingness to pay for information on the quality of the show. The data employed are weekly time series observations on attendance to Broadway performances and individual characteristics of each Broadway show playing between December 1995 and June 2003. Our primary measure of quality is the number of Tony Awards won by each production. We use a discrete choice model which allows us to separate the e¤ect of prices and quality on the shows. attendance and we account for the endogeneity of prices and explicitly model the endogeneity of the outcome of the Tony award. Our results show Broadway theatre demand slopes down and the Tony Awards variable has a positive e¤ect on the shows. shares of occupied space, which turns into a positive willingness to pay for this quality indicator. Our results are robust to the inclusion of several types of .xed e¤ects including show, theatre, yearly, and monthly; di¤erent ways to model the endogeneity of price and the Tony award.

Suggested Citation

  • Ricardo Cavazos & Felipe Vásquez & Jeffrey T. LaFrance, 2009. "Quality Effects and the Value of Information on the Demand for Broadway Shows," Working Papers 06-2009, Departamento de Economía, Universidad de Concepción.
    • Handle: RePEc:cnc:wpaper:06-2009
    as

    Download full text from publisher

    File URL: http://educacion.facea.udec.cl/economia/?q=node/149
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tseng Peggy H. & Kulkarni Gauri, 2013. "Examining the Dynamics of Consumer Interest and Live Performance Event TicketSales in the Presence of a Critical Industry-Wide Event," Review of Marketing Science, De Gruyter, vol. 11(1), pages 33-53, November.

    More about this item

    Keywords

    Cultural Economics; Quality perception; Demand models;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cnc:wpaper:06-2009. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ronald Sepulveda (email available below). General contact details of provider: https://edirc.repec.org/data/deudecl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.