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Addictive behavior in cinema demand: evidence from Korea

Author

Listed:
  • Sangho KIM

    (College of Business, Honam University, Gwangju 506-714, KOREA)

  • Donghyun PARK

    (Economics and Research Department (ERD), Asian Development Bank (ADB), 6 ADB Avenue, Mandaluyong City, PHILIPPINES 1550)

Abstract

It is intuitively plausible that the demand for cinema services may be partly driven by addiction or habit. Yet there is almost no empirical literature which tests for whether cinema demand is addictive. We estimate addiction models for cinema demand using Korean time series data from 1963 to 2004. Our estimation results indicate that (i) addictive behavior characterizes the demand for cinema services, (ii) this behavior is rational, and (iii) habit is one of most important determinants of cinema demand. Our results also reveal that cinema attendance is generally insensitive to admission price and unrelated to income.

Suggested Citation

  • Sangho KIM & Donghyun PARK, 2010. "Addictive behavior in cinema demand: evidence from Korea," Economic Growth Centre Working Paper Series 1002, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    • Handle: RePEc:nan:wpaper:1002
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    References listed on IDEAS

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    Cited by:

    1. 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.

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    More about this item

    Keywords

    Cinema demand; rational addiction; myopic addiction; two-stages least squares; time-series analysis;
    All these keywords.

    JEL classification:

    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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