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Rethinking rational addictive behaviour and demand for cinema: a study using Japanese panel data

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  • Eiji Yamamura

Abstract

In this article, I explore the extent to which the rational addiction model developed by Becker and Murphy (1988) can account for cinema attendance, using panel data from 47 Japanese prefectures for the years 1994-1998. Controlling for unobserved prefecture-specific fixed effects and an endogeneity bias of the lagged and lead-dependent variables (the volume of cinema attendance), by using a fixed effect two-stage least squares estimation, I find that people in Japan are likely to be addictive. This finding is contrary to that found in the United Kingdom (Cameron, 1999). Further results suggest that the younger the people are, the more video is a favoured substitute for the cinema. If other factors are equal, the past accumulated consumption of young people is, of course, smaller than that of older people. Hence, the addictive behaviour is more attenuated for younger people because of their lesser past consumption. The complementary effect of past consumption is more likely to outweigh the substitution effect of preferring video as people become older. These findings are in accord with the Becker and Murphy (1988) model of rational addiction.

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  • Eiji Yamamura, 2009. "Rethinking rational addictive behaviour and demand for cinema: a study using Japanese panel data," Applied Economics Letters, Taylor & Francis Journals, vol. 16(7), pages 693-697.
  • Handle: RePEc:taf:apeclt:v:16:y:2009:i:7:p:693-697
    DOI: 10.1080/13504850701221782
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    1. Chaloupka, Frank, 1991. "Rational Addictive Behavior and Cigarette Smoking," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 722-742, August.
    2. Olekalns, Nilss & Bardsley, Peter, 1996. "Rational Addiction to Caffeine: An Analysis of Coffee Consumption," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 1100-1104, October.
    3. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
    4. Samuel Cameron, 1999. "Rational addiction and the demand for cinema," Applied Economics Letters, Taylor & Francis Journals, vol. 6(9), pages 617-620.
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    Cited by:

    1. Mark Fox & Grant Black, 2011. "The Rise and Decline of Drive-in Cinemas in the United States," Chapters, in: Samuel Cameron (ed.), Handbook on the Economics of Leisure, chapter 14, Edward Elgar Publishing.
    2. Bartosz Jusypenko & Aleksandra Wiśniewska, 2020. ""I go, I pay". The role of experience in recognizing the need for public financing of cultural goods," Working Papers 2020-04, Faculty of Economic Sciences, University of Warsaw.
    3. Thomas Demuynck & Ewout Verriest, 2013. "I’Ll Never Forget My First Cigarette: A Revealed Preference Analysis Of The “Habits As Durables” Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(2), pages 717-738, May.
    4. Concetta Castiglione & Davide Infante, 2015. "Rational addiction and cultural goods: the case of the Italian theatregoer," ACEI Working Paper Series AWP-03-2015, Association for Cultural Economics International, revised May 2015.
    5. Jordi McKenzie, 2023. "The economics of movies (revisited): A survey of recent literature," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 480-525, April.
    6. Eiji Yamamura, 2014. "The effect of young children on their parents’ anime-viewing habits: evidence from Japanese microdata," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(4), pages 331-349, November.
    7. Yamamura, Eiji, 2013. "Externality of young children on parents’ watching of anime: Evidence from Japanese micro data," MPRA Paper 46878, University Library of Munich, Germany.
    8. Tristan Masters & Roslyn Russell & Robert Brooks, 2011. "The demand for creative arts in regional Victoria, Australia," Applied Economics, Taylor & Francis Journals, vol. 43(5), pages 619-629.

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