Blockbusters and market expansion: evidence from the motion picture industry

Jordi Mckenzie () and Vladimir Smirnov

Journal of Cultural Economics, 2018, vol. 42, issue 2, No 8, 352 pages

Abstract: Abstract Like other cultural industries, the theatrical film industry is subject to the ‘blockbuster effect’, where popular products often dominate their competition by orders of magnitude over relatively short-run time horizons. This paper investigates this particular feature of the industry and the implication for overall market size. Using simple regression analysis, a positive relationship between (product-level) market concentration and market size is established using weekly box office revenue data from the US motion picture industry. This empirical evidence supports a simple theoretical model of heterogeneous consumers who selectively participate in the market.

Keywords: Blockbusters; Market expansion; Motion pictures (search for similar items in EconPapers)
JEL-codes: L11 L82 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s10824-017-9308-y

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