Theme park rides are Giffen goods

Abstract

Using a unique proprietary data set on the behavior of guests visiting theme parks, I document evidence for Giffen behavior in the demand for theme park rides. On average, when the price of a ride increases, that is, the wait time increases, then the probability of riding it increases. This relationship arises predominantly among demand for the least‐desirable rides, it arises predominantly in the theme parks with the fewest number of substitute rides, and it is robust to controlling for expectations of future wait times and other sensitivity analyses. These patterns are all consistent with Giffen behavior.