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In this paper, we present a model in which the performing arts are modelled as congestible public goods. In accordance with empirical evidence, the production of seat capacity is assumed to be subject to fixed costs. We estimate the parameters of the model's demand and cost functions using...
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be provided publicly and to be subsidized in order to maximize welfare. Congestion implies that more capacity than … both, diminishing average costs and congestion, and indicate inefficiently low ticket prices. The public theater sector as …
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