Lines of Research
Tchaikovsky Perm opera and ballet theatre. Events within the research can be found here.
From the economic point of view, the definitions of preferences, utility and demand may be applied to cultural products. On the one hand, cultural products, such as books or theatrical performances, contain a set of characteristics (for instance, author, genre, “quality” of content etc.) which bring them to the space of differentiated products. On the other hand, cultural products may differ not only with the content but with the physical representation. Thus, the same book in various book cover may be valued in a different way depending on the goal of purchase. Like this, a value of a performance for spectators seating in stalls or upper circle in theater hall may also vary. Such phenomena of cultural products consumption from the economic point of view generate the complicated patterns of substitution between various forms of the same product and across products. From the sociologic point of view, this indicates the presence of the heterogeneity in individuals motives and different factors affecting consumer value of the product, such as demonstrative consumption or omnivorism, which are not taken into account in classical economic models of consumer behavior. Thus, we incorporate sociological insights on consumer motives for cultural participation into economics models of consumer behavior in the markets of cultural products which will be tested on the unique real data on cultural products purchases.
The research of consumer preferences and demand for cultural products allows to answer important social and cultural producers’ questions:
- Individual demand for cultural goods is lower than the socially desirable level. This leads to government subsidy of some cultural industries (museums and theaters, for instance). The correct revealing of demand elasticity by price and income for cultural products moves the society closer to effective pricing and subsiding for cultural products.
- Deep understanding of consumers heterogeneity and revealing different motives for cultural participation allow the producers and sellers of cultural goods to construct effective mechanisms of price discrimination and marketing interventions oriented to certain consumers segments increasing social welfare on particular cultural markets.
- Ozhegov E. M., Ozhegova A. Demand for Performing Arts: The Effect of Unobserved Quality on Price Elasticity / NRU Higher School of Economics. Series WP BRP "Economics/EC". 2016. No. WP BRP 156/EC/2016 .
- Ozhegov E. M., Orlov D. Do sequel movies really earn more than non-sequels? Evidence from the US box office / ACEI. Series "Working paper series". 2016. No. AWP - 03 - 2016.
- Kochkina N., Popova E. Are books luxury good in Russia? 2017 (unpublished manuscript)
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