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The Market for Motion Pictures in Thailand: Rank, Revenue, and Survival at the Box Office

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  • W. D. Walls

    (University of Calgary)

Abstract

We examine the theatrical market for motion pictures in Thailand using a sample of films exhibited in 2004¡V2008. Using data on weekly and cumulative film revenues, we find strong evidence of increasing returns to information as indicated by substantial concave departures from the Pareto size distribution. The distribution of cumulative revenues across films is consistent with the winner-take-all nature of an elimination tournament. In contrast to other markets dominated by Hollywood imports, several of the top-earning films in Thailand are domestically produced.

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Bibliographic Info

Paper provided by Department of Economics, University of Calgary in its series Working Papers with number 2009-15.

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Date of creation: 01 Sep 2009
Date of revision: 01 Sep 2009
Handle: RePEc:clg:wpaper:2009-15

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References

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  1. Keith Acheson & Christopher Maule, 1994. "Understanding Hollywood's Organization and Continuing Sucess," Carleton Industrial Organization Research Unit (CIORU) 94-07, Carleton University, Department of Economics.
  2. Ronald Goettler & Phillip Leslie, 2003. "Cofinancing to Manage Risk in the Motion Picture Industry," GSIA Working Papers 2003-E34, Carnegie Mellon University, Tepper School of Business.
  3. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
  4. Peter Davis, 2006. "MEASURING THE BUSINESS STEALING, CANNIBALIZATION AND MARKET EXPANSION EFFECTS OF ENTRY IN THE U.S. MOTION PICTURE EXHIBITION MARKET -super-* ," Journal of Industrial Economics, Wiley Blackwell, vol. 54(3), pages 293-321, 09.
  5. Arthur De Vany & Henry McMillan, 2004. "Was the Antitrust Action that Broke Up the Movie Studios Good for the Movies? Evidence from the Stock Market," American Law and Economics Review, Oxford University Press, vol. 6(1), pages 135-153.
  6. W. David Walls, 1997. "Increasing returns to information: evidence from the Hong Kong movie market," Applied Economics Letters, Taylor & Francis Journals, vol. 4(5), pages 287-290.
  7. Darius Palia & S. Abraham Ravid & Natalia Reisel, 2008. "Choosing to Cofinance: Analysis of Project-Specific Alliances in the Movie Industry," Review of Financial Studies, Society for Financial Studies, vol. 21(2), pages 483-511, April.
  8. 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.
  9. C. Edward Fee, 2002. "The Costs of Outside Equity Control: Evidence from Motion Picture Financing Decisions," The Journal of Business, University of Chicago Press, vol. 75(4), pages 681-712, October.
  10. Peter Davis, 2006. "Spatial competition in retail markets: movie theaters," RAND Journal of Economics, RAND Corporation, vol. 37(4), pages 964-982, December.
  11. De Vany, Arthur & Walls, W David, 1996. "Bose-Einstein Dynamics and Adaptive Contracting in the Motion Picture Industry," Economic Journal, Royal Economic Society, vol. 106(439), pages 1493-1514, November.
  12. Ijiri, Yuji & Simon, Herbert A, 1974. "Interpretations of Departures from the Pareto Curve Firm-Size Distributions," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 315-31, Part I, M.
  13. Darlene C. Chisholm, 1993. "Asset Specificity and Long-Term Contracts: The Case of the Motion-Pictures Industry," Eastern Economic Journal, Eastern Economic Association, vol. 19(2), pages 143-155, Spring.
  14. Chris Hand, 2001. "Increasing returns to information: further evidence from the UK film market," Applied Economics Letters, Taylor & Francis Journals, vol. 8(6), pages 419-421.
  15. F. Andrew, 2002. "Revenue-Sharing in Movie Exhibition and the Arrival of Sound," Economic Inquiry, Western Economic Association International, vol. 40(3), pages 380-402, July.
  16. Arthur De Vany & W. David Walls, 2002. "Does Hollywood Make Too Many R-Rated Movies? Risk, Stochastic Dominance, and the Illusion of Expectation," The Journal of Business, University of Chicago Press, vol. 75(3), pages 425-452, July.
  17. Moul, Charles, 2001. "Evidence of Qualitative Learning-by-Doing from the Advent of the 'Talkie.'," Journal of Industrial Economics, Wiley Blackwell, vol. 49(1), pages 97-109, March.
  18. W. David Walls, 1998. "Product survival at the cinema: evidence from Hong Kong," Applied Economics Letters, Taylor & Francis Journals, vol. 5(4), pages 215-219.
  19. Blumenthal, Marsha A, 1988. "Auctions with Constrained Information: Blind Bidding for Motion Pictures," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 191-98, May.
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Cited by:
  1. 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.

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