Distribution conventionality in the movie sector: an econometric analysis of cinema supply

Alan Collins, Antonello E. Scorcu and Roberto Zanola
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Antonello E. Scorcu: Department of Economics, University of Bologna, Bologna, Italy, Postal: Department of Economics, University of Bologna, Bologna, Italy
Roberto Zanola: Department of Public Policy and Public Choice, University of Eastern Piedmont, Turin, Italy, Postal: Department of Public Policy and Public Choice, University of Eastern Piedmont, Turin, Italy

Managerial and Decision Economics, 2009, vol. 30, issue 8, pages 517-527

Abstract: This paper empirically analyzes the impact of several factors on a 'conventionality index (CI)' in the specific context of the cinema exhibition sector. To our knowledge, it is the first time that a standard CI has been constructed for this purpose. Econometric analysis of the determinants of variation in this index provides decision-makers with an empirical focus for analyzing distributional aspects of the movie exhibition market, with particular emphasis on product differentiation. Specifically, (i) do cinemas based in a city area have a different or 'specialized' focus in contrast to cinemas in small towns? or (ii) do multiplexes have a different or more specialized focus in comparison with cinemas? To this end, cross-sectional econometric models are estimated to help analyze these effects in three Italian regions for a sample of cinemas covering the 2006 season. Copyright © 2009 John Wiley & Sons, Ltd.

Date: 2009

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Working Paper: Distribution Conventionality in the Movie Sector: An Econometric Analysis of Cinema Supply (2008)
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