Demand functions for museum services

Museums worldwide are facing financial exigencies and are being forced to rely on earned income, including admission fees, to finance their activities. Using data from the 1989 Museum Survey, we estimate demand functions for seven types of museums in the United States. Previous empirical evidence on the effects of admission fees on museum attendance have either been anecdotal or case study in nature. This study presents the first general empirical evidence on factors influencing the demand for museum services. Our results provide evidence that the demand for museum services is price inelastic and that museum quality has important effects on museum demand. We also argue that our results indicate that the adverse effects of admission charges on attendance are small and relatively easy to alleviate.