Work detail

Baumol´s cost Disease in Czech Regional Opera Theatres

Author: Bc. Jiří Poláček
Year: 2011 - summer
Leaders: PhDr. Lenka Šťastná Ph.D.
Consultants:
Work type: Bachelors
Language: Czech
Pages: 90
Awards and prizes:
Link:
Abstract: This thesis examines the existence of Baumol’s cost disease in Czech regional opera
theatres. The study is divided into a theoretical and an empirical section. The theoretical
section deals with Baumol’s concept of cost disease and its impacts on a theatre,
externalities arising from a theatre’s operations, public subsidies, demand for arts and
ticket prices and their impact on the theatre’s income. The empirical section analyzes
the existence and scope of the cost disease in selected theatres (Divadlo J. K. Tyla in
Pilsen, Severočeské divadlo in Usti nad Labem, and Jihočeské divadlo in Ceske
Budejovice). The examination has revealed the presence of the cost disease in all the
theatres; however, the scope and the impact of the cost disease differ significantly from
theatre to theatre. On the basis of these findings, the study concludes that theatres may
counteract the cost disease by offering an attractive theatrical product, which allows for
a continuous increase in revenues from ticket sales.
Downloadable: Bachelor Thesis of Poláček

Partners

Deloitte

Sponsors

CRIF
McKinsey
Patria Finance