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Addictive behavior in cinema demand: evidence from Korea

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Author Info

  • Sangho KIM

    (College of Business, Honam University, Gwangju 506-714, KOREA)

  • Donghyun PARK

    (Economics and Research Department (ERD), Asian Development Bank (ADB), 6 ADB Avenue, Mandaluyong City, PHILIPPINES 1550)

Abstract

It is intuitively plausible that the demand for cinema services may be partly driven by addiction or habit. Yet there is almost no empirical literature which tests for whether cinema demand is addictive. We estimate addiction models for cinema demand using Korean time series data from 1963 to 2004. Our estimation results indicate that (i) addictive behavior characterizes the demand for cinema services, (ii) this behavior is rational, and (iii) habit is one of most important determinants of cinema demand. Our results also reveal that cinema attendance is generally insensitive to admission price and unrelated to income.

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Bibliographic Info

Paper provided by Nanyang Technolgical University, School of Humanities and Social Sciences, Economic Growth centre in its series Economic Growth centre Working Paper Series with number 1002.

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Length: 28 pages
Date of creation: Feb 2010
Date of revision:
Handle: RePEc:nan:wpaper:1002

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Related research

Keywords: Cinema demand; rational addiction; myopic addiction; two-stages least squares; time-series analysis;

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References

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  1. Davidson, Russell & MacKinnon, James G., 1989. "Testing for Consistency using Artificial Regressions," Econometric Theory, Cambridge University Press, vol. 5(03), pages 363-384, December.
  2. Russell Davidson & James G. MacKinnon, 1999. "Artificial Regressions," Working Papers 978, Queen's University, Department of Economics.
  3. Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
  4. Gary S. Becker & Michael Grossman & Kevin M. Murphy, 1990. "An Empirical Analysis of Cigarette Addiction," NBER Working Papers 3322, National Bureau of Economic Research, Inc.
  5. Dewenter, Ralf & Westermann, Michael, 2003. "Cinema demand in Germany," IBES Diskussionsbeiträge 125, University of Duisburg-Essen, Faculty for Economics and Business Administration.
  6. Gary S. Becker & Kevin M. Murphy, 1986. "A Theory of Rational Addiction," University of Chicago - George G. Stigler Center for Study of Economy and State 41, Chicago - Center for Study of Economy and State.
  7. Victor Ginsburgh & Sheila Weyers, 1999. "On the Perceived Quality of Movies," Journal of Cultural Economics, Springer, vol. 23(4), pages 269-283, November.
  8. Peter Macmillan & Ian Smith, 2001. "Explaining Post-War Cinema Attendance in Great Britain," Journal of Cultural Economics, Springer, vol. 25(2), pages 91-108, May.
  9. VÍctor Blanco & JosÉ BaÑos Pino, 1997. "Cinema Demand in Spain: A Cointegration Analysis," Journal of Cultural Economics, Springer, vol. 21(1), pages 57-75, March.
  10. Michael J. Moore & Philip J. Cook, 1995. "Habit and Heterogeneity in the Youthful Demand for Alcohol," NBER Working Papers 5152, National Bureau of Economic Research, Inc.
  11. Paulo Brito & Carlos Barros, 2005. "Learning-by-Consuming and the Dynamics of the Demand and Prices of Cultural Goods," Journal of Cultural Economics, Springer, vol. 29(2), pages 83-106, May.
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Cited by:
  1. Marco Alderighi & Eleonora Lorenzini, 2012. "Cultural goods, cultivation of taste, satisfaction and increasing marginal utility during vacations," Journal of Cultural Economics, Springer, vol. 36(1), pages 1-26, February.

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