Revenue and Attendance Simultaneous Optimization in Performing Arts Organizations

Andrea Baldin, Trine Bille, Andrea Ellero, Daniela Favaretto

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    Performing arts organizations are characterized by different objectives other than revenue. Even if, on the one hand, theaters aim to increase revenue from box office as a consequence of the systematic reduction in public funds; on the other hand, they pursue the objective to increase its attendance. A common practice by theaters is to provide incentives to customers to discriminate among themselves according to their reservation price, offering a schedule of different prices corresponding to different seats in the venue. In this context, price and allocation of the theater seating area is decision variables that allow theater managers to manage their two conflicting goals to be pursued. In this paper, we introduce a multi-objective optimization model that jointly considers pricing and seat allocation. The framework proposed integrates a choice model estimated by multinomial logit model and the demand forecast, taking into account the impact of heterogeneity among customer categories in both choice and demand. The proposed model is validated with booking data referring to the Royal Danish theater during the period 2010–2015.
    Original languageEnglish
    JournalJournal of Cultural Economics
    Issue number4
    Pages (from-to)677-700
    Number of pages24
    Publication statusPublished - Nov 2018

    Bibliographical note

    Published online: 3. May 2018


    • Multi-objective optimization
    • Pricing
    • Seat allocation
    • Multinomial logit model
    • Theater demand

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