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Demand for cinema and diverging tastes of critics and audiences

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  • Wallentin, Erik

Abstract

Cinema is an experience good and consumers will use reviews by professional critics to reduce the inherent uncertainty of consumption. Two aspects of demand for cinema is analyzed; the demand of critics and the demand of the audience. Estimations are done in two steps on a set of Swedish data covering cinema ticket sales and review scores. I conclude that there is a great deal of discrepancy between which characteristics the audience favor and which ones professional critics value. On average it is however concluded that there is a positive relationship between review scores and ticket sales. Due to data limitations one cannot conclude whether this is a case of predication or influence.

Suggested Citation

  • Wallentin, Erik, 2016. "Demand for cinema and diverging tastes of critics and audiences," Journal of Retailing and Consumer Services, Elsevier, vol. 33(C), pages 72-81.
    • Handle: RePEc:eee:joreco:v:33:y:2016:i:c:p:72-81
    DOI: 10.1016/j.jretconser.2016.08.002
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    Cited by:

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    2. Sara Suarez-Fernandez & Maria Jose Perez-Villadoniga & Juan Prieto-Rodriguez, 2018. "Are We (Un)Consciously Driven by First Impressions? Price Declarations vs. Observed Cinema Demand when VAT Increases," ACEI Working Paper Series AWP-02-2018, Association for Cultural Economics International, revised Jul 2018.
    3. Jordi McKenzie, 2023. "The economics of movies (revisited): A survey of recent literature," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 480-525, April.

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    More about this item

    Keywords

    Cinema; Movies; Consumer demand; Reviews; Critics;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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