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The economics of broadway - Essay Example
Broadway is a major street in New York. From http:/en.wikipedia.org/wiki/Broadway, Broadway theatre refers to theatrical productions produced in one of forty professional New York theatres.In a more common usage; it refers to general performance or theatrical productions.
The purpose of this paper is to agree with this statement "the economics of broadway are harsh and unforgiving because it is virtually impossible to raise substantially the productivity of performance.yet a long run,especially a musical,can minimize the potential for financial problem".
High Prices of tickets:The price of tickets in at broadway theatre in recent times is known to be on the high side.And due to the high cost of tickets,people now decide to go to the theatre fewer times compared to before.They are only prepared to pay for the high cost of tickets when there is a hit performance.And visiting the theatre has now become an event rather than a habit.This tantamounts to the drop in productivity of performance.
Price Discrimination:One point supporting this notion is that economics of Broadway is harsh is the issue of price discrimination in the theatre.These involve the non- uniformity in prices of tickets.Different seats qualities do have different prices to them.Also discount prices which are targetted at customers with low willingness to pay,result in prices that differ from the uniform set price. Selling of tickets at half-prices on the day of performance at a discount booth is seen as a damaged good that further discriminates among self-selecting customers. ...