EconFact 09/05: How to Succeed in Broadway

via Expert Vagabond

via Expert Vagabond

Yesterday I was lucky enough to get some tickets to go see “The Book of Mormon”, the hit-Broadway show that has a satirical take on the practices of the Church of Latter-Day Saints. Besides having a reputation for being really funny, they’re also known to be really expensive. 
Normally, the ticket prices are really expensive hovering around $300 (fig  1, source: Seat Geekleading to a number of ways  you can get tickets, including ticket lotteries and lining up to get standing room seats.
Broadway is a half a billion dollar industry and growing due to rising ticket prices (fig 2, source: Daily Finance). The reasons are many but it mostly has to do with higher and higher demand; increasing number tourists who visit New York, high-profile Hollywood actors joining the fray (case in point,  Hugh Jackman made over $1 million in a week just chilling on a stage), word-of-mouth from people who get seats (because people can’t afford tickets are “in love”  with the possibility of striking it big), and that shows are relying onrepeated viewings to drive sales (hey, it is proven that repeated viewings of art may increase utility with time depending on what emotional state you were originally in).
Takeaway: Paul and Chloe getting lucky Book of Mormon tickets and talking about how fantastic it was feeds back into the ticket-price-complex because it drives up demand.

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