Consumer choice of theatrical productions: a combined revealed preference–stated preference approach

Abstract

This paper investigates the value of attributes of theatrical productions using a joint revealed preference–stated preference (RP–SP) method. SP models have advantages over RP models, requiring less data and avoiding multicollinearity problems which often confound RP analysis. However, the advantage to joint RP–SP model is that theatre-goers choices are anchored to real behaviour. The RP–SP model reveals the most important determinant of choice and willingness to pay (WTP) to be the type of show. The Royal Shakespeare Company strongly influenced choice and WTP. Reviews of productions by theatre critics influenced choice. A mixed logit model revealed considerable heterogeneity in theatre-goer tastes for types of show and variation in taste for the attributes of shows by socioeconomic and demographic profile of theatre-goers.