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On the Public Provision of the Performing Arts

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  • Traub, Stefan
  • Missong, Martin

Abstract

In this paper, we present a model in which the performing arts are modelled as congestible public goods. In accordance with empirical evidence, the production of seat capacity is assumed to be subject to fixed costs. We estimate the parameters of the model's demand and cost functions using German data. Using these estimates in a subsequent social choice analysis, we show that the current situation in the German performing arts sector is best described by a directorship that under the influence of a selfish theater lobby maximizes only the welfare of the spectators. Such an equilibrium, characterized by too low ticket prices and too large capacity, is most likely to establish if citizens have a very positive ex ante notion of the performing arts.

Suggested Citation

  • Traub, Stefan & Missong, Martin, 2003. "On the Public Provision of the Performing Arts," Economics Working Papers 2003-02 [rev.], Christian-Albrechts-University of Kiel, Department of Economics.
    • Handle: RePEc:zbw:cauewp:2850
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    References listed on IDEAS

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    1. Mills, David E, 1981. "Ownership Arrangements and Congestion-Prone Facilities," American Economic Review, American Economic Association, vol. 71(3), pages 493-502, June.
    2. Small, Kenneth A. & Gomez-Ibanez, Jose A., 1999. "Urban transportation," Handbook of Regional and Urban Economics, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 46, pages 1937-1999, Elsevier.
    3. Traub, Stefan & Missong, Martin, 2005. "On the public provision of the performing arts," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 862-882, November.
    4. Reiter, Michael & Weichenrieder, Alfons J., 1999. "Public Goods, Club Goods, and the Measurement of Crowding," Journal of Urban Economics, Elsevier, vol. 46(1), pages 69-79, July.
    5. Mark Blaug, 2001. "Where Are We Now On Cultural Economics," Journal of Economic Surveys, Wiley Blackwell, vol. 15(2), pages 123-143, April.
    6. Edelson, Noel M, 1971. "Congestion Tolls Under Monopoly," American Economic Review, American Economic Association, vol. 61(5), pages 873-882, December.
    7. Agnar Sandmo, 1973. "Public Goods and the Technology of Consumption," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 40(4), pages 517-528.
    8. Oates, Wallace E., 1988. "On the measurement of congestion in the provision of local public goods," Journal of Urban Economics, Elsevier, vol. 24(1), pages 85-94, July.
    9. Richard Arnott & Marvin Kraus, 2003. "Transport Economics," Boston College Working Papers in Economics 553, Boston College Department of Economics.
    10. Abbe-Decarroux, Francois, 1994. "The perception of quality and the demand for services : Empirical application to the performing arts," Journal of Economic Behavior & Organization, Elsevier, vol. 23(1), pages 99-107, January.
    11. Oakland, William H., 1972. "Congestion, public goods and welfare," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 339-357, November.
    12. repec:bla:jecsur:v:15:y:2001:i:2:p:123-43 is not listed on IDEAS
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    Citations

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    Cited by:

    1. Kristien Werck & Bruno Heyndels & Benny Geys, 2008. "The impact of ‘central places’ on spatial spending patterns: evidence from Flemish local government cultural expenditures," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 32(1), pages 35-58, March.
    2. Paul Madden, 2008. "Price, quality and welfare consequences of alternative club objectives in a professional sport league," Economics Discussion Paper Series 0802, Economics, The University of Manchester.
    3. Thiess Buettner & Eckhard Janeba, 2016. "City competition for the creative class," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 40(4), pages 413-451, November.
    4. Traub, Stefan & Missong, Martin, 2005. "On the public provision of the performing arts," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 862-882, November.
    5. Madden, Paul, 2012. "Fan welfare maximization as a club objective in a professional sports league," European Economic Review, Elsevier, vol. 56(3), pages 560-578.

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    More about this item

    Keywords

    Performing Arts; Public Facilities; Congestion;
    All these keywords.

    JEL classification:

    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • H40 - Public Economics - - Publicly Provided Goods - - - General

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