Superstars and heavy tails in recorded entertainment: empirical analysis of the market for DVDs
This research presents a systematic empirical analysis of the market for digital versatile discs (DVDs). We examine a sample of 953 DVD titles that appeared on the weekly top-30 sales charts in North America over a 30-month interval. We find that the size distribution of weekly DVD sales revenue does not indicate the presence of increasing returns to information. The empirical results for DVD sales contrast starkly with previous results obtained for motion-picture box-office revenue, where a number of researchers have found evidence of positive feedback in demand. While the distribution of cumulative revenues across DVDs is highly unequal, the DVD market appears not to be characterized by the extreme heavy upper tail that so well describes the winner-take-all nature of the distribution of box-office success across motion pictures.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 34 (2010)
Issue (Month): 4 (November)
|Contact details of provider:|| Web page: http://www.springer.com|
Web page: http://www.culturaleconomics.org/
More information through EDIRC
|Order Information:||Web: http://www.springer.com/economics/journal/10824/PS2|
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.:
- De Vany, A. & Walls, W.D., 2000.
"Does Hollywood make too many R-Rated Movies? Risk, Stochastic Dominance, and the Illusion of Expectation,"
99-00-24, California Irvine - School of Social Sciences.
- 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.
- 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.
- 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.
- 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.
- W. D. Walls, 2005.
"Modelling heavy tails and skewness in film returns,"
Applied Financial Economics,
Taylor & Francis Journals, vol. 15(17), pages 1181-1188.
- Vining, Daniel R, Jr, 1976. "Autocorrelated Growth Rates and the Pareto Law: A Further Analysis," Journal of Political Economy, University of Chicago Press, vol. 84(2), pages 369-80, April.
- 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.
- Peter Davis, 2006. "Spatial competition in retail markets: movie theaters," RAND Journal of Economics, RAND Corporation, vol. 37(4), pages 964-982, December.
- Sushil Bikhchandani & David Hirshleifer & Ivo Welch, 2010.
"A theory of Fads, Fashion, Custom and cultural change as informational Cascades,"
Levine's Working Paper Archive
1193, David K. Levine.
- Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992. "A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 992-1026, October.
- 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;The Association for Cultural Economics International, vol. 23(4), pages 285-318, November.
- 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.
- Dennis W. Carlton & Judith A. Chevalier, 2001.
"Free Riding and Sales Strategies for the Internet,"
NBER Working Papers
8067, National Bureau of Economic Research, Inc.
- Dennis W. Carlton & Judith A. Chevalier, 2001. "Free Riding and Sales Strategies for the Internet," NBER Chapters, in: E-commerce, pages 441-461 National Bureau of Economic Research, Inc.
- Carlton, Dennis W & Chevalier, Judith A, 2001. "Free Riding and Sales Strategies for the Internet," Journal of Industrial Economics, Wiley Blackwell, vol. 49(4), pages 441-61, December.
- Julie Holland Mortimer, 2005.
"Price Discrimination, Copyright Law, and Technological Innovation: Evidence from the Introduction of DVDs,"
NBER Working Papers
11676, National Bureau of Economic Research, Inc.
- Mortimer, Julie Holland, 2007. "Price Discrimination, Copyright Law, and Technological Innovation: Evidence From The Introduction of DVDs," Scholarly Articles 3425914, Harvard University Department of Economics.
- Charles C. Moul, 2007. "Measuring Word of Mouth's Impact on Theatrical Movie Admissions," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(4), pages 859-892, December.
- Julie Holland Mortimer, 2007. "Price Discrimination, Copyright Law, and Technological Innovation: Evidence from the Introduction of DVDs," The Quarterly Journal of Economics, Oxford University Press, vol. 122(3), pages 1307-1350.
- De Vany, Arthur S. & Walls, W. David, 2004. "Motion picture profit, the stable Paretian hypothesis, and the curse of the superstar," Journal of Economic Dynamics and Control, Elsevier, vol. 28(6), pages 1035-1057, March.
- W. D. Walls, 2005. "Demand stochastics, supply adaptation, and the distribution of film earnings," Applied Economics Letters, Taylor & Francis Journals, vol. 12(10), pages 619-623.
- David Maddison, 2004. "Increasing returns to information and the survival of broadway theatre productions," Applied Economics Letters, Taylor & Francis Journals, vol. 11(10), pages 639-643.
- 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.
- 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.
- Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-58, December.
- Ronald L. Goettler & Phillip Leslie, 2005.
"Cofinancing to Manage Risk in the Motion Picture Industry,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 14(2), pages 231-261, 06.
- 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.
- 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.
- James Jozefowicz & Jason Kelley & Stephanie Brewer, 2008. "New Release: An Empirical Analysis of VHS/DVD Rental Success," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 36(2), pages 139-151, June.
- Sherwin Rosen & Andy Rosenfield, 1995.
University of Chicago - George G. Stigler Center for Study of Economy and State
120, Chicago - Center for Study of Economy and State.
- Vijay Mahajan & Eitan Muller & Roger A. Kerin, 1984. "Introduction Strategy for New Products with Positive and Negative Word-of-Mouth," Management Science, INFORMS, vol. 30(12), pages 1389-1404, December.
- David Giles, 2007.
"Increasing returns to information in the US popular music industry,"
Applied Economics Letters,
Taylor & Francis Journals, vol. 14(5), pages 327-331.
- David E. Giles, 2005. "Increasing Returns to Information in the U.S. Popular Music Industry," Econometrics Working Papers 0510, Department of Economics, University of Victoria.
- Victor Ginsburgh, 2001. "Economics of arts and culture," ULB Institutional Repository 2013/1869, ULB -- Universite Libre de Bruxelles.
- 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.
- Darlene Chisholm & George Norman, 2002. "Heterogeneous Preferences and Location Choice with Multi-Product Firms," Discussion Papers Series, Department of Economics, Tufts University 0205, Department of Economics, Tufts University.
- De Vany, Arthur & Lee, Cassey, 2001. "Quality signals in information cascades and the dynamics of the distribution of motion picture box office revenues," Journal of Economic Dynamics and Control, Elsevier, vol. 25(3-4), pages 593-614, March.
- Randy Nelson & Clifford Reid & Owen Gilmore, 2007. "An Analysis of the Out-of-Market Gap for DVDs in the U.S," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 30(4), pages 303-323, June.
- 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.
- Mizerski, Richard W, 1982. " An Attribution Explanation of the Disproportionate Influence of Unfavorable Information," Journal of Consumer Research, Oxford University Press, vol. 9(3), pages 301-10, December.
- Kenney, Roy W & Klein, Benjamin, 1983. "The Economics of Block Booking," Journal of Law and Economics, University of Chicago Press, vol. 26(3), pages 497-540, October.
- 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.
When requesting a correction, please mention this item's handle: RePEc:kap:jculte:v:34:y:2010:i:4:p:261-279. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.