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The Effect Of Social Influence On Market Inequalities In The Motion Picture Industry

Author

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  • SEBASTIANO A. DELRE

    (Faculty of Economics and Business, University of Groningen, PO Box 800, 9700 AV Groningen, The Netherlands;
    Faculty of Economics, LUISS Guido Carli, Viale Pola 12, 00198 Rome, Italy)

  • THIJS L. J. BROEKHUIZEN

    (Faculty of Economics and Business, University of Groningen, PO Box 800, 9700 AV Groningen, The Netherlands)

  • WANDER JAGER

    (Faculty of Economics and Business, University of Groningen, PO Box 800, 9700 AV Groningen, The Netherlands)

Abstract

In this paper we investigate the degree to which two social influences, namely imitation and coordinated consumption, effectuate inequalities in the motion picture industry. We develop an agent-based model based on micro movie visitors' decision-making that generates the observed macro market outcomes. The simulation model makes use of the findings of an empirical survey amongst 1112 cinema visitors. We find that social influences explain market inequalities and that the impact of coordinated consumption on market inequalities is stronger than the impact of imitation.

Suggested Citation

  • Sebastiano A. Delre & Thijs L. J. Broekhuizen & Wander Jager, 2008. "The Effect Of Social Influence On Market Inequalities In The Motion Picture Industry," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 11(02), pages 273-287.
    • Handle: RePEc:wsi:acsxxx:v:11:y:2008:i:02:n:s0219525908001623
    DOI: 10.1142/S0219525908001623
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