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Distribution Conventionality in the Movie Sector: An Econometric Analysis of Cinema Supply

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  • A. Collins
  • A. E. Scorcu
  • R. Zanola

Abstract

This paper empirically analyzes the impact of several factors on a 'conventionality index (CI)' in the specific context of the cinema exhibition sector. To our knowledge, it is the first time that a standard CI has been constructed for this purpose. Econometric analysis of the determinants of variation in this index provides decision-makers with an empirical focus for analyzing distributional aspects of the movie exhibition market, with particular emphasis on product differentiation. Specifically, (i) do cinemas based in a city area have a different or 'specialized' focus in contrast to cinemas in small towns? or (ii) do multiplexes have a different or more specialized focus in comparison with cinemas? To this end, cross-sectional econometric models are estimated to help analyze these effects in three Italian regions for a sample of cinemas covering the 2006 season. Copyright © 2009 John Wiley & Sons, Ltd.

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Paper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number 639.

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Date of creation: Jul 2008
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Handle: RePEc:bol:bodewp:639

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  1. Chisholm, Darlene C. & Norman, George, 2004. "Heterogeneous preferences and location choice with multi-product firms," Regional Science and Urban Economics, Elsevier, vol. 34(3), pages 321-339, May.
  2. Darlene C. Chisholm & Margaret S. McMillan & George Norman, 2005. "Product Differentiation and Film Programming Choice: Do First-Run Movie Theatres Show the Same Films?," Discussion Papers Series, Department of Economics, Tufts University 0523, Department of Economics, Tufts University.
  3. Alan Collins & Chris Hand & Andrew Ryder, 2005. "The lure of the multiplex? The interplay of time, distance, and cinema attendance," Environment and Planning A, Pion Ltd, London, vol. 37(3), pages 483-501, March.
  4. Helmut Bester, 1998. "Quality Uncertainty Mitigates Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 29(4), pages 828-844, Winter.
  5. de Palma, A, et al, 1985. "The Principle of Minimum Differentiation Holds under Sufficient Heterogeneity," Econometrica, Econometric Society, vol. 53(4), pages 767-81, July.
  6. John O’Hagan & Adriana Neligan, 2005. "State Subsidies and Repertoire Conventionality in the Non-Profit English Theatre Sector: An Econometric Analysis," Journal of Cultural Economics, Springer, vol. 29(1), pages 35-57, February.
  7. Adriana Neligan, 2006. "Public funding and repertoire conventionality in the German public theatre sector: an econometric analysis," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1111-1121.
  8. d'ASPREMONT, Claude & GABSZEWICZ, Jean J. & THISSE, Jacques-François, . "On Hotelling's "Stability in competition"," CORE Discussion Papers RP -385, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  9. Shaked, Avner & Sutton, John, 1982. "Relaxing Price Competition through Product Differentiation," Review of Economic Studies, Wiley Blackwell, vol. 49(1), pages 3-13, January.
  10. Adams, William James & Yellen, Janet L, 1976. "Commodity Bundling and the Burden of Monopoly," The Quarterly Journal of Economics, MIT Press, vol. 90(3), pages 475-98, August.
  11. Salinger, Michael A, 1995. "A Graphical Analysis of Bundling," The Journal of Business, University of Chicago Press, vol. 68(1), pages 85-98, January.
  12. Kristien Werck & Mona Grinwis Plaat Stultjes & Bruno Heyndels, 2008. "Budgetary constraints and programmatic choices by Flemish subsidized theatres," Applied Economics, Taylor & Francis Journals, vol. 40(18), pages 2369-2379.
  13. Dansby, Robert E & Conrad, Cecilia, 1984. "Commodity Bundling," American Economic Review, American Economic Association, vol. 74(2), pages 377-81, May.
  14. J. Pierce, 2000. "Programmatic Risk-Taking by American Opera Companies," Journal of Cultural Economics, Springer, vol. 24(1), pages 45-63, February.
  15. A. Sisto & R. Zanola, 2010. "Cinema attendance in Europe," Applied Economics Letters, Taylor & Francis Journals, vol. 17(5), pages 515-517.
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Cited by:
  1. Darlene Chisholm & Margaret McMillan & George Norman, 2010. "Product differentiation and film-programming choice: do first-run movie theatres show the same films?," Journal of Cultural Economics, Springer, vol. 34(2), pages 131-145, May.
  2. Darlene C. Chisolm & George Norman, 2011. "Spatial Competition and market Share: An Application to Motion Pictures," Discussion Papers Series, Department of Economics, Tufts University 0763, Department of Economics, Tufts University.

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