Richard T. Carson: Contingent valuation: a comprehensive bibliography and history

For those of us who have been involved in willingness to pay studies for some time, Contingent Valuation: A comprehensive bibliography and history by Richard Carson is a fascinating read, tracking the early development of the method and debates around it from an insider’s perspective. As someone who has not only been involved in contingent valuation research over many years, but who has also been instrumental in shaping it, Richard Carson is the ideal author of this carefully crafted book

Festival fringe production and the long tail

In the past 15 years, there has been a worldwide proliferation of arts festivals, including so-called "fringe" festivals, which encouraged more experimental and avant-garde productions. While fringe festival productions had the potential to generate significant income for producers, their aims were primarily related to artistic innovation and it is well known that putting on a fringe show is highly unlikely to provide financial gain for most producers. This is what is referred to in statistics and marketing as a "long tail" distribution, in which a minority of producers in a particular market earn the vast majority of industry income. However, for individual producers of live theatre, such a distribution represents high risks and potentially large financial losses. This article uses producer data from two different fringe festivals in South Africa to explore determinants of ticket sales and box-office income. Included in the analysis is a consideration of the impact of genre and pricing strategies on the probability (Logit model) of shows being in the top 10%, 30% and 50% of best-selling and earning productions. Results support the long tail hypothesis

Richard T. Carson: Contingent valuation: a comprehensive bibliography and history

For those of us who have been involved in willingness to pay studies for some time, Contingent Valuation: A comprehensive bibliography and history by Richard Carson is a fascinating read, tracking the early development of the method and debates around it from an insider’s perspective. As someone who has not only been involved in contingent valuation research over many years, but who has also been instrumental in shaping it, Richard Carson is the ideal author of this carefully crafted book

Festival fringe production and the long tail

Publisher versionIn the past 15 years, there has been a worldwide proliferation of arts festivals, including so-called "fringe" festivals, which encouraged more experimental and avant-garde productions. While fringe festival productions had the potential to generate significant income for producers, their aims were primarily related to artistic innovation and it is well known that putting on a fringe show is highly unlikely to provide financial gain for most producers. This is what is referred to in statistics and marketing as a "long tail" distribution, in which a minority of producers in a particular market earn the vast majority of industry income. However, for individual producers of live theatre, such a distribution represents high risks and potentially large financial losses. This article uses producer data from two different fringe festivals in South Africa to explore determinants of ticket sales and box-office income. Included in the analysis is a consideration of the impact of genre and pricing strategies on the probability (Logit model) of shows being in the top 10%, 30% and 50% of best-selling and earning productions. Results support the long tail hypothesis

Are arts events a good way of augmenting the economic impact of sport?: The case of the 2010 FIFA world cup and the national arts festival in South Africa

Despite the debate about whether arts consumers are also sports consumers, many countries have used cultural events to leverage further tourism spending from sports events, the most famous example being the cultural Olympics. This paper reports the findings of research conducted at the 2010 South African National Arts Festival, which was specifically timed to coincide with SoccerWorld Cup matches being played in a nearby city. Of the 600 interviews conducted with Festival-goers, only 23% reported also attending World Cup soccer matches. Regression analysis revealed that, while there is some overlap between arts and sports attendees, their demographics and consumption habits are significantly different. However, consumption outside of major events showed somewhat more overlap. This suggests that staging cultural events at the same time as major sporting events is not an ideal strategy, since they tend to compete with, rather than complement, each other

Subjective well-being in Africa

Research on quality of life and subjective well-being (SWB) has witnessed a remarkable growth over the past four decades or so. Since Easterlin’s (1974) seminal contribution on the relationship between happiness and income, thousands of studies have followed that examine the intricacies of subjective well-being (for reviews, see Frey and Stutzer, 2002; Dolan et al., 2008; MacKerron, 2012). These studies have uncovered some very important aspects of individual well-being and have pointed to the fact that money or income is not always (as is often assumed) the most important determinant of SWB

Making rules to live by: Was the proposed regulatory regime for invasive species reasonable? Perceptions of the South African trout industry

Despite considerable economic impact of trout-based aquaculture and recreational fishing, the Department of Environmental Affairs has been focusing almost entirely on ecological criteria in deciding the regulatory regime for trout. We examined whether the proposed regulatory regime for alien and invasive species that was published by the Department of Environmental Affairs in 2014 for public comment was reasonable. The analysis produced factors that might matter in the design of reasonable institutional arrangements that impose a reasonable regulatory burden on economic sectors utilising invasive species. We conducted factor analysis using an online survey that we conducted between May and July 2014. We obtained four clusters of factors: participatory policymaking, people-centeredness, credible scientific evidence for listing species as invasive and contextualisation of international evidence. We then utilised the factors in a logistic regression framework to assess their influence on the probability of perceiving the regulations to be reasonable. The likelihood of a trout sector player perceiving the regulations to be reasonable was 1.2%. We found that a one standard deviation increase in the “credibility of scientific evidence” increased the odds of perceiving the regulations to be reasonable by 1645%. A one standard deviation increase in “participation” increased the odds of perceiving the regulations to be reasonable by 410%. A one standard deviation increase in “people-centeredness” increased the odds of perceiving the regulations to be reasonable by 600%. Lastly, a one standard deviation increase in the variable “contextualising international evidence” increased the odds of perceiving the regulations to be reasonable by 415%. This research demonstrates that properly addressing the socioeconomic aspects of new policies in addition to ecological criteria makes it far more likely that stakeholders will regard them as reasonable, even if the new policies impose increased regulatory transaction cost burden on users or reduced access to a resource

Art investment in South Africa: portfolio diversification and art market efficiency

Art has been suggested as a good way to diversify investment portfolios during times of financial uncertainty. The argument is that art exhibits different risk and return characteristics to conventional investments in other asset classes. The new Citadel art price index offered the opportunity to test this theory in the South African context. Moreover, this paper tests whether art prices are efficient. The Citadel index uses the hedonic regression method with observations drawn from the top 100, 50 and 20 artists by sales volume, giving approximately 29 503 total auction observations. The Index consists of quarterly data from the period 2000Q1 to 2013Q3. A vector autoregression of the art price index, Johannesburg stock exchange all-share index, house price index, and South African government bond index were used. Results show that, when there are increased returns on the stock market in a preceding period and wealth increases, there is a change in the Citadel art price index in the same direction. No significant difference was found between the house price index and the art price index, or between the art and government bond price indices. The art market is also found to be inefficient, thereby exacerbating the risk of investing in art. Overall, the South African art market does not offer the opportunity to diversify portfolios dominated by either property, bonds, or shares

Rhino poaching: supply and demand uncertain

IN THEIR POLICY FORUM “LEGAL TRADE OF AFRICA’S RHINO HORNS” (1 MARCH, P. 1038), D. Biggs et al. point out that the trade ban on rhino horn has not been successful in reducing rhino poaching, which reached a record high of 668 in 2012. They argue that trade bans support illegal organizations, whereas a regulated legal market could reduce poaching effort and provide much-needed income for conservation. In making their case, Biggs et al. overlook a few important points

Determinants of student satisfaction with campus residence life at a South African University

Although there are a number of studies on the determinants of general quality of life among university students, these occur mainly in developed countries and do not focus specifically on campus-based residence life. It has long been accepted that factors outside the classroom (“the other curriculum”) can contribute to academic success, as well as the achievement of other important outcomes such as the appreciation of human diversity. Striving towards equality of residence life satisfaction across different racial and gender groups, for example, is thus important for academic outcomes and for the development of well-functioning citizens. This study is based on the 2011 Quality of Residence Life (QoRL) Survey, conducted at a South African university, comprising roughly 2 000 respondents. Based on descriptive analyses and ordered probit regressions, the study investigates the association between satisfaction with QoRL and (i) residence milieu and characteristics, (ii) direct and indirect discrimination, (iii) perceptions of drug and alcohol issues in residence, (iv) safety, and (v) individual student characteristics. One of the main findings is that there are no significant differences in satisfaction with QoRL across racial and gender groups; a finding that suggests significant progress in university transformation and equity goals. The general atmosphere and characteristics of residences are also important predictors of QoRL satisfaction.Economic Research Southern Africa (ERSA) is a research programme funded by the National Treasury of South Africa