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A note on the relationship of mainstream and art house movie theaters

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  • Christopher Müller

    () (Department of Economics, Johann Wolfgang Goethe-University)

  • Enrico Böhme

    () (Department of Economics, Johann Wolfgang Goethe-University)

Abstract

We use a set of German micro data to study the relationship between mainstream and art house movie theaters. We find that both types of cinema have a significant price effect within their own group, but there is no significant price effect between the two types. Furthermore, we provide an example for the biased results that occur, if both types of movie theaters are pooled into one regression. Doing so, we demonstrate that it is important, to carefully distinguish mainstream and art house facilities in empirical studies of the movie theater industry.

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File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I1-P4.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 31 (2011)
Issue (Month): 1 ()
Pages: 29-34

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Handle: RePEc:ebl:ecbull:eb-10-00453

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Keywords: substitutability; complementarity; movie theater industry; Germany;

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  1. Dewenter, Ralf & Westermann, Michael, 2003. "Cinema demand in Germany," IBES Diskussionsbeiträge 125, University of Duisburg-Essen, Faculty for Economics and Business Administration.
  2. Peter Macmillan & Ian Smith, 2001. "Explaining Post-War Cinema Attendance in Great Britain," Journal of Cultural Economics, Springer, vol. 25(2), pages 91-108, May.
  3. Darren Filson & David Switzer & Portia Besocke, 2005. "At the Movies: The Economics of Exhibition Contracts," Economic Inquiry, Western Economic Association International, vol. 43(2), pages 354-369, April.
  4. Davis, Peter, 2005. "The Effect of Local Competition on Admission Prices in the U.S. Motion Picture Exhibition Market," Journal of Law and Economics, University of Chicago Press, vol. 48(2), pages 677-708, October.
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