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Increasing returns to information and the survival of broadway theatre productions

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  • David Maddison

Abstract

Many similarities exist between films and live theatre. Examination of the relationship between the log rank of a Broadway show and the number of performances reveals a significant departure from the Pareto distribution. This matches findings made for the corresponding relationship between log rank and film revenues. Using models of duration it is shown that a variety of characteristics, including genre, determine the number of performances on Broadway and whether the show is in receipt of prestigious awards. These findings are also similar to those for films except for the fact that as the duration of a run increases, the hazard rate declines. This is consistent with a situation when individuals base decisions on which show to attend partially on the observed length of a theatrical run. Over time theatrical productions are tending to survive longer in the market place and original shows tend to outlast revivals.

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  • David Maddison, 2004. "Increasing returns to information and the survival of broadway theatre productions," Applied Economics Letters, Taylor & Francis Journals, vol. 11(10), pages 639-643.
    • Handle: RePEc:taf:apeclt:v:11:y:2004:i:10:p:639-643
    DOI: 10.1080/1350485042000227304
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    References listed on IDEAS

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    Cited by:

    1. David Giles, 2007. "Increasing returns to information in the US popular music industry," Applied Economics Letters, Taylor & Francis Journals, vol. 14(5), pages 327-331.
    2. Melissa Boyle & Lesley Chiou, 2009. "Broadway productions and the value of a Tony Award," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 33(1), pages 49-68, February.
    3. W. D. Walls, "undated". "Modeling heavy tails and skewness in film returns," Working Papers 2014-48, Department of Economics, University of Calgary, revised 23 Sep 2014.
    4. Gaffeo, Edoardo & Scorcu, Antonello E. & Vici, Laura, 2008. "Demand distribution dynamics in creative industries: The market for books in Italy," Information Economics and Policy, Elsevier, vol. 20(3), pages 257-268, September.
    5. David Giles, 2007. "Survival of the hippest: life at the top of the hot 100," Applied Economics, Taylor & Francis Journals, vol. 39(15), pages 1877-1887.
    6. W. D. Walls, 2009. "The Market for Motion Pictures in Thailand: Rank, Revenue, and Survival at the Box Office," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 8(2), pages 115-131, August.
    7. Tol, Richard S.J., 2013. "The Matthew effect for cohorts of economists," Journal of Informetrics, Elsevier, vol. 7(2), pages 522-527.
    8. JORDI McKENZIE, 2009. "Illegal Music Downloading And Its Impact On Legitimate Sales: Australian Empirical Evidence," Australian Economic Papers, Wiley Blackwell, vol. 48(4), pages 296-307, December.
    9. W. D. Walls & Jordi McKenzie, 2020. "Black swan models for the entertainment industry with an application to the movie business," Empirical Economics, Springer, vol. 59(6), pages 3019-3032, December.
    10. Arthur Vany & W. Walls, 2007. "Estimating the Effects of Movie Piracy on Box-office Revenue," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 30(4), pages 291-301, June.
    11. Sacit Hadi Akdede & Ayla Oğus, 2009. "Death As A Measure Of Duration Of Conflict," Defence and Peace Economics, Taylor & Francis Journals, vol. 20(6), pages 465-476.
    12. W. Walls, 2010. "Superstars and heavy tails in recorded entertainment: empirical analysis of the market for DVDs," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 34(4), pages 261-279, November.
    13. Jordi McKenzie, 2010. "Movie producers and the statistical distribution of achievement," Applied Economics Letters, Taylor & Francis Journals, vol. 17(17), pages 1657-1661.
    14. Andrés González-Moralejo, S & Compés López, R, 2009. "Problemas contractuales y acuerdos de subcontratación: El caso de la logística frigorífica en la industria alimentaria valenciana/," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 27, pages 279(30á)-27, Abril.
    15. David Maddison, 2005. "Are There Too Many Revivals on Broadway? A Stochastic Dominance Approach," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 29(4), pages 325-334, November.
    16. Caroline Elliott & Rob Simmons, 2011. "Factors determining UK album success," Applied Economics, Taylor & Francis Journals, vol. 43(30), pages 4699-4705.
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    18. Sacit Hadi Akdede & Ayla Ogus, 2006. "Increasing returns to information and the survival of Turkish public theatre plays," Applied Economics Letters, Taylor & Francis Journals, vol. 13(12), pages 785-788.

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