This paper provides a rich assessment of the demand characteristics for movie theatre attendance in two major metropolitan markets and provides strong support for the importance of spatial characteristics in empirical demand analysis. We provide evidence of the usual competitive effect of location on an exhibitor’s demand but also find evidence of a clustering effect: when a group of theatres is in close proximity to each other, their proximity generates additional demand for all theatres within the cluster. The demographic evidence suggests that movie attendance is a normal good but does not support the commonly held industry view that young male viewers drive demand. Finally, we show that attendance at a particular theatre is affected by both the theatre’s attributes and the attributes of nearby competing theatres. The attributes we include cover physical features and theatre type.
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Length: Date of creation: 2002 Date of revision: Handle: RePEc:tuf:tuftec:0216
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Find related papers by JEL classification: L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Drusilla Brown & Alan Deardorff & Robert Stern, 1998.
"Trade and Labor Standards,"
Open Economies Review,
Springer, vol. 9(2), pages 171-194, April.
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Brown, K.D. & Deardorff, A.V. & Stern, R.M., 1997.
"Trade and Labor Standards,"
Working Papers
394, Research Seminar in International Economics, University of Michigan.
Simon P. Anderson & Andre de Palma & Jacques-Francois Thisse, 1987.
"Demand for Differentiated Products,"
Discussion Papers
726, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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