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Cinema demand in Germany

Author

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  • Dewenter, Ralf
  • Westermann, Michael

Abstract

In the present paper we examine the German cinema market using time series data of 49 years. Applying estimation techniques such as OLS, 2SLS and SUR, we identify interrelations between the number of screens, the average real prices and the demand for movies per inhabitant. Furthermore, we test for the long run relationship and evaluate the elasticities of demand with respect to real price and income. Moreover, we analyse if cinema can be defined as an addictive good which can be explained with a myopic habit or rational addiction approach.

Suggested Citation

  • Dewenter, Ralf & Westermann, Michael, 2003. "Cinema demand in Germany," IBES Diskussionsbeiträge 125, University of Duisburg-Essen, Institute of Business and Economic Studie (IBES).
    • Handle: RePEc:zbw:udewwd:125
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    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • 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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