Based on teaching a course in cultural and entertainment economics over ten years, five distinguishing features are discussed: (1) how the goals and pedagogical approach were linked to the highly diverse composition of the student audience; (2) somewhat more ‘technical’ aspects of the analysis were not ignored, and were in fact sometimes emphasized; (3) sports was included as a part of the ‘entertainment’ sector, and clearly as part of the ‘cultural infrastructure’; (4) guest speakers were used who were linked to consulting experience in both the arts and sports; and (5) a term paper was required based on strong student interest in a particular topic covered in the course. Personal challenges and rewards are recounted, along with specific suggestions and examples regarding how to meet the challenges of teaching this important material.
Bruce A. Seaman
Five important distinguishing features are identified that extend the usual analysis of consumer demand to the case of the demand for cultural goods, with a particular focus on unique factors determining the price and income elasticities of demand; the role of education; learning-by-consuming; the challenge of assessing product quality; and the complex role of social factors. Based on successful experience using a concert pricing example that does not shy away from some limited technical aspects of the analysis, a hypothetical case study is fully described and analysed as a vehicle for clarifying key distinctions such as demand vs quantity demanded; point vs arc price elasticity of demand; and the role of marginal cost in distinguishing gross revenue vs net revenue maximization. Specific hints for effective teaching, as well as suggested questions for students are provided.
Bruce A. Seaman
Coherent pricing strategies are important to for-profit firms, but can also be vital to nonprofit organizations. This is clearly true for the arts, education, and hospital and health-care sectors, but can also extend to nonprofits providing vital social services to low-income and otherwise vulnerable populations. By clarifying both static and dynamic pricing strategies that have been successfully used by for-profits, and examining their current application and potential expansion within the nonprofit sector, the striking similarities as well as ongoing distinctions between the two sectors are clarified. Especially in a political climate threatening to be less generous to nonprofits committed to diverse missions, understanding how to generate more earned revenue via shrewd price discrimination, tying/bundling, and yield management and peak-load pricing strategies is vital. Classic research results are incorporated with current theoretical and empirical developments to provide a comprehensive picture of pricing in the nonprofit sector.
Bruce A. Seaman
Conceptualizing how to define and measure the economic impacts of the arts is part of a larger debate regarding intrinsic versus instrumental impacts that extends into other sectors of the economy. This broader context is addressed, identifying three different types of economic impact, together with very specific methodological errors to avoid in order to generate defensible results for the very prevalent short-term spending impacts. Different impact methodologies and their inter-relationships are identified, and the debate regarding ex ante versus econometric ex post methodologies is addressed in detail, with elaborations of specific examples in sports versus the arts. The distinction between incremental regional impact analysis and other approaches, such as census-based national income accounting (satellite accounts), is identified, together with short-cut methods such as online economic impact calculators.