On the assumed inelasticity of demand for the performing arts

Abstract

For the past decade, cultural economists have been telling performing arts organlratious that they can increase their box office receipts by raising ticket prices; or, as an economist would put it, that their price elasticity of demand is inelastic. This conclusion has invariably been reached for groups of companies, either for a specific medium such as orchestras, or across a number of performing mediums (Withers, 1980; Touchstone, 1980; Lange and Luksetich, 1984; Throsby and Withers, 1987). Furthermore, these studies have treated subscribers and nonsubscribers as a single entity. The implication is that, as with socks, "one size fits all."