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Product survival at the cinema: evidence from Hong Kong

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  • W. David Walls

Abstract

The lifetime of a motion picture is the margin through which supply adjusts to market demand due to demand-invariant admission prices and fixed seating capacity. The lifetimes of a sample of 493 motion pictures that were exhibited at cinemas in Hong Kong during 1994-1996 are examined. It is found that the hazard rate is an increasing function of time, and that the type of movie and the initial box office revenue are economically and statistically significant determinants of a movie's life length.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 5 (1998)
Issue (Month): 4 ()
Pages: 215-219

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Handle: RePEc:taf:apeclt:v:5:y:1998:i:4:p:215-219

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Cited by:
  1. Jordi McKenzie, 2009. "Revealed word-of-mouth demand and adaptive supply: survival of motion pictures at the Australian box office," Journal of Cultural Economics, Springer, vol. 33(4), pages 279-299, November.
  2. Jordi McKenzie & W. Walls, 2013. "Australian films at the Australian box office: performance, distribution, and subsidies," Journal of Cultural Economics, Springer, vol. 37(2), pages 247-269, May.
  3. 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.
  4. 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, College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 8(2), pages 115-131, August.
  5. Arthur De Vany & W. Walls, 1999. "Uncertainty in the Movie Industry: Does Star Power Reduce the Terror of the Box Office?," Journal of Cultural Economics, Springer, vol. 23(4), pages 285-318, November.

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