Cost disease in consumption and spectatorship management : a cross-country study of the value creation mechanism in the performing arts

This study examines value creation in the performing arts, applying Baumol’s cost disease theory in a twocountry study (the United States and China). The study applies value creation and cost disease theory in a novel manner by taking a consumer perspective, thus extending the theories to the discussion of the concept of time while asserting the effectiveness of economies of scale. This work uses observation and structured interviews in a case study framework. The findings show that the value creation mechanisms of the two production systems are spatial fix and mass spectatorship in advance, signalling a battle for attention. From management of time in production to cost disease in consumption, the study draws new conclusions based on the 50-year-old cost disease theory.