Modelling Preference Heterogeneity for Theatre Tickets: A Discrete Choice Modelling Approach on Royal Danish Theatre Booking Data

Andrea Baldin, Trine Bille

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    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.
    Original languageEnglish
    JournalApplied Economics
    Volume50
    Issue number5
    Pages (from-to)545-558
    Number of pages14
    ISSN0003-6846
    DOIs
    Publication statusPublished - 2018

    Bibliographical note

    Published online: 7. June 2017

    Keywords

    • Theatre demand
    • Discrete choice models
    • Price discrimination
    • Willingness to pay
    • Market segments

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