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Managing the supply of short-life products. A duration analysis approach using the UK film industry

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  • Izquierdo Sanchez, Sofia

Abstract

Movies are uncertain products. Nobody knows much about them prior to their screening and their attempt to survive in the risky motion picture market week by week. This paper studies short-life products using the UK film industry as an example, with a larger database than employed previously, including high and low-budget films. Two effects not previously taken into account in the empirical literature are considered: cross-subsidisation and opportunity cost. Using a clog-log methodology and a sample of 552 films released in the UK, the empirical results highlight the importance of the distributor’s strategy and word-of-mouth for success in experience goods industries.

Suggested Citation

  • Izquierdo Sanchez, Sofia, 2014. "Managing the supply of short-life products. A duration analysis approach using the UK film industry," MPRA Paper 79024, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:79024
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    References listed on IDEAS

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    More about this item

    Keywords

    short-life products; film industry; clog-log distribution; duration analysis;

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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