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Rational addiction and the demand for cinema

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  • Samuel Cameron

Abstract

This paper estimates Becker's rational addiction model using a demand for cinema equation. The results do not seem to be strongly supportive of the rational addiction model. As in Becker, Murphy, Grossman we find a significant coefficient on the lead consumption term and a quite plausible discount rate in OLS estimation with significant price effects. However the IV estimates preferred by Becker et al. fails to give support for any elements of the model.

Suggested Citation

  • Samuel Cameron, 1999. "Rational addiction and the demand for cinema," Applied Economics Letters, Taylor & Francis Journals, vol. 6(9), pages 617-620.
  • Handle: RePEc:taf:apeclt:v:6:y:1999:i:9:p:617-620
    DOI: 10.1080/135048599352736
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    Cited by:

    1. Alan Collins & Chris Hand & Maggie Linnell, 2008. "Analyzing repeat consumption of identical cultural goods: some exploratory evidence from moviegoing," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 32(3), pages 187-199, September.
    2. Mark Fox & Grant Black, 2011. "The Rise and Decline of Drive-in Cinemas in the United States," Chapters,in: Handbook on the Economics of Leisure, chapter 14 Edward Elgar Publishing.
    3. Kaili Shen & David Giles, 2006. "Rational exuberance at the mall: addiction to carrying a credit card balance," Applied Economics, Taylor & Francis Journals, vol. 38(5), pages 587-592.
    4. Silvia TIEZZI, "undated". "Addiction and Smoking Behaviour in Italy," EcoMod2004 330600141, EcoMod.
    5. Victor Fernandez-Blanco & Luis Orea & Juan Prieto-Rodriguez, 2013. "Endogeneity and measurement errors when estimating demand functions with average prices: an example from the movie market," Empirical Economics, Springer, vol. 44(3), pages 1477-1496, June.
    6. 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.
    7. Chris Hand, 2002. "The Distribution and Predictability of Cinema Admissions," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 26(1), pages 53-64, February.
    8. Louis Lévy-Garboua & Claude Montmarquette, 2011. "Demand," Chapters,in: A Handbook of Cultural Economics, Second Edition, chapter 26 Edward Elgar Publishing.
      • Louis Lévy-Garboua & Claude Montmarquette, 2003. "Demand," Chapters,in: A Handbook of Cultural Economics, chapter 25 Edward Elgar Publishing.
    9. Auld, M. Christopher & Grootendorst, Paul, 2004. "An empirical analysis of milk addiction," Journal of Health Economics, Elsevier, vol. 23(6), pages 1117-1133, November.
    10. Concetta Castiglione & Davide Infante, 2016. "Rational addiction and cultural goods: the case of the Italian theatregoer," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 40(2), pages 163-190, May.
    11. Silvia Tiezzi, 2005. "An empirical analysis of tobacco addiction in Italy," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 6(3), pages 233-243, September.
    12. Ralf Dewenter & Michael Westermann, 2005. "Cinema Demand In Germany," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 29(3), pages 213-231, August.
    13. Marco Alderighi & Eleonora Lorenzini, 2012. "Cultural goods, cultivation of taste, satisfaction and increasing marginal utility during vacations," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 36(1), pages 1-26, February.
    14. Roger Collet & Mathieu De Lapparent & Laurent Hivert, 2010. "Addiction to car use and dynamic elasticity measures in France," Post-Print hal-00614966, HAL.
    15. Louis Lévy-Garboua & Claude Montmarquette, 2002. "The Demand for the Arts," CIRANO Working Papers 2002s-10, CIRANO.
    16. 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.
    17. Martyn Duffy, 2006. "Tobacco consumption and policy in the United Kingdom," Applied Economics, Taylor & Francis Journals, vol. 38(11), pages 1235-1257.
    18. 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.
    19. Cuccia, Tiziana, 2009. "A Contingent Ranking Study on the Preferences of Tourists across Seasons/A Contingent Ranking Study on the Preferences of Tourists across Seasons," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 27, pages 161-176, Abril.
    20. Marshall, Pablo & Dockendorff, Monika & Ibáñez, Soledad, 2013. "A forecasting system for movie attendance," Journal of Business Research, Elsevier, vol. 66(10), pages 1800-1806.
    21. Fernandez-Blanco, Victor & Orea, Luis & Prieto-Rodriguez, Juan, 2009. "Analyzing consumers heterogeneity and self-reported tastes: An approach consistent with the consumer's decision making process," Journal of Economic Psychology, Elsevier, vol. 30(4), pages 622-633, August.
    22. Collet, Roger & de Lapparent, Matthieu & Hivert, Laurent, 2015. "Are French households car-use addicts? A microeconomic perspective," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 54(C), pages 86-94.
    23. Silvia Tiezzi, 2003. "Addiction and Smoking Behaviour in Italy," Department of Economics University of Siena 412, Department of Economics, University of Siena.

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