Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 298: Who visits the museums? A comparison between stated preferences and observed effects of entrance fees

Elina Lampi () and Matilda Orth ()
Additional contact information
Elina Lampi: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG
Matilda Orth: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG

Abstract: This study investigates whether the introduction of an entrance fee affects visitor composition at a state funded museum in Sweden. While entrance to the museum was still free, we conducted a survey to collect information about visitor characteristics and used the Contingent Valuation (CV) method to measure visitors’ willingness to pay (WTP) for a visit. The results of the CV survey show that even a very low entrance fee level results in a significant reduction in several target groups that the museum has policy directives to reach. Additionally, we conducted another survey after the introduction of the fee. Thus, we have a unique opportunity to test the validity of CV in the context of a cultural good. The comparison between the predicted results from the CV and the observed change in visitor composition after the introduction of the fee implies that CV does predict a majority of the changes successfully.

Keywords: free entrance; visitor composition; museum; natural experiment; stated preferences

JEL-codes: D12; H41; Z11

24 pages, April 9, 2008

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