Abstract
This chapter studies the relevance of the multi-product nature of a firm whose core-business rests in the performing arts sector. A specific case study is presented concerning ‘Centro Zo’, which was born in Catania (Italy) about 15 years ago, to supply performing arts. Now it is a multi-product firm, offering different goods and services. The multi-product choice is investigated from the firm’s perspective, and from the consumers’ standpoint. Data, collected in 2013, are used to investigate how consumers evaluate the different products, and their propensity to joint consumption. We show that the interest for different goods changes across different groups of consumers attending live performances at Centro Zo. However, the multi-product choice allows the firm to sustain its core business, and—we suggest—makes it more independent from the local policy-makers.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
An exception could be Alexander (1994), which analyses the multi-product nature of some firms in the music recording industry; the focus of that case-study, however, is on the recording and distributing firms, rather than on the creation of artistic products.
- 2.
Borgonovi (2004) is an example of investigation on performing arts attendance, which has inspired the present analysis. In that article, one can find also a short discussion concerning the theoretical issues related to each of the explanatory factors considered.
- 3.
In what follows, we report the results that are more relevant from Centro Zo’s perspective. See Cellini et al. (2014) for a more comprehensive view of the statistical evidence and estimates from the data of this sample.
References
Alexander, P. J. U. (1994). Entry barriers, release behavior, and multi-product firms in the music recording industry. Review of Industrial Organization, 9, 85–98.
Baumol, W. J., & Bowen, W. G. (1965). On the performing arts: The anatomy of their problems. American Economic Review Papers and Proceedings, 55, 495–502.
Baumol, W. J., & Bowen, W. G. (1966). Performing arts – The economic dilemma. Cambridge: Twentieth Century Fund.
Bernard, A. B., Redding, S. J., & Schott, P. K. (2010). Multiple-product firms and product switching. American Economic Review, 100(1), 70–97.
Borgonovi, F. (2004). Performing arts attendance: An economic approach. Applied Economics, 36, 1871–1885.
Cellini, R., & Cuccia, T. (2003). Incomplete information and experimentation in the arts: A game theory approach. Economia Politica, 20, 21–37.
Cellini, R., Martorana, M. F., & Platania, F. (2014). The multi-product nature of the firm in the arts sector: A case study on ‘Centro Zo’ (MPRA Paper 60677). University Library of Munich, Germany. Retrieved September 15, 2016 from: https://mpra.ub.uni-muenchen.de/60677/
De Marchi, N., & Van Miegroet, H. J. (2006). The history of art markets. In V. A. Ginsburgh & D. Throsby (Eds.), Handbook of the economics of art and culture (pp. 69–122). Amsterdam: North Holland.
Dobson, P. W., & Waterson, M. (1996). Product range and inter-firm competition. Journal of Economics and Management Strategy, 5, 317–341.
Manez, J. A., & Waterson, M. (2001). Multiproduct firms and product differentiation: A survey (Warwick Economic Research paper No. 594).
Minniti, A., & Turino, F. (2013). Multi-product firms and business cycle dynamics. European Economic Review, 57, 75–97.
Peterson, R. A., & Kern, R. (1996). Changing highbrow taste: From snob to omnivore. American Sociological Review, 61, 900–907.
Acknowledgments
We are indebted to all the participants in the project, from whom we have received continuous and important insights. We would like to thank also Alan Collins, Antonello E. Scorcu and Roberto Zanola for discussions on related issues. The usual disclaimer applies.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2017 Springer International Publishing AG
About this chapter
Cite this chapter
Cellini, R., Martorana, M.F., Platania, F. (2017). The Multi-product Nature of the Firm in the Arts Sector: The Case of ‘Centro Zo’. In: Ateca-Amestoy, V., Ginsburgh, V., Mazza, I., O'Hagan, J., Prieto-Rodriguez, J. (eds) Enhancing Participation in the Arts in the EU. Springer, Cham. https://doi.org/10.1007/978-3-319-09096-2_15
Download citation
DOI: https://doi.org/10.1007/978-3-319-09096-2_15
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-09095-5
Online ISBN: 978-3-319-09096-2
eBook Packages: Economics and FinanceEconomics and Finance (R0)