Searching for ideal price discrimination in the history of opera : lottery as a way to get a consumer surplus

Abstract

The present paper discusses a hypothetical but markedly interesting and effective form of price discrimination stemming from the evolution of opera as a distinctive cultural subdomain. The first chapters of the text describe in detail the origins of the genre and institution, characterising concurrently the genesis of partial price discrimination measures to yield the maximum consumer surplus possible. Opera apparently epitomises a prime example illustrating the business model based on price discrimination: unlike, for instance, drama as another category of theatrical entertainment, opera has always been accompanied by high costs, and effectively implemented price discrimination thus became a vital component of the relevant economic framework. The second section of the article then proposes a theoretical concept that exploits the individual discrimination methods applied within opera and that, using the lottery principle, exhibits a potential to acquire full consumer surplus.

Keywords

• price discrimination
• consumer surplus
• opera history