In many countries the provision of the performing arts is assigned to the public sector. Public theaters cover most of their costs by subsidies rather than ticket sale. Moreover, relatively low utilization of capacity suggests that there are large and persistent over-capacities in the market. In...

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...

Utilizing a simplified version of the Meltzer-Richard redistribution mechanism we designed a laboratory experiment to test whether it matters if voters were asked to decide on a tax rate or minimum income, leaving the redistribution mechanism itself unchanged. Framing the vote about...