Demand for movies in Europe and the effects of multiplex diffusion: a panel approach
AbstractIn this paper we try to test the role of multiplex. While usually multiplex is analysed in supply side since it can reduce the cost of exhibition through scale economies in several function, we focus on demand side. The positive role of multiplex is related to the risk reduction of the audience and the improved condition of new theatres. The possible negative role is related to the competition of big multiplex chains towards traditional theatres that can be moved out of market thus reducing eventually theatres density and overall supply. We explore the movie demand evolution in Europe with a data set of 15 countries from 1989 to 2003. We estimate with a panel approach a simple demand function of film exhibition with yearly tickets per inhabitant as dependent variable where as expected price coefficient is negative and income coefficient is positive. Multiplex diffusion, indicated as the percentage of multiplex seats over total seats, appears to be moderately positive and is 1% significant. The results are robust to different model specification.
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Bibliographic InfoPaper provided by Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano in its series Departmental Working Papers with number 2009-03.
Date of creation: 05 Feb 2009
Date of revision:
Consumer economics; empirical analysis; industry studies; performing arts;
Other versions of this item:
- Orietta DESSY & Marco GAMBARO, 2008. "Demand for movies in Europe and the effects of multiplex diffusion: a panel approach," Departmental Working Papers 2008-25, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-06-17 (All new papers)
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- Enrico Böhme & Christopher Müller, 2011.
"Searching for the Concentration-Price Effect in the German Movie Theater Industry,"
Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik),
Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 231(4), pages 479-493, August.
- Böhme, Enrico & Müller, Christopher, 2009. "Searching for the Concentration-Price Effect in the German Movie Theater Industry," MPRA Paper 15315, University Library of Munich, Germany.
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