Movie Industry Demand and Theater Availability

Tin Cheuk Leung (), Shi Qi () and Jia Yuan ()
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Tin Cheuk Leung: Wake Forest University
Shi Qi: College of William and Mary
Jia Yuan: University of Macau

Review of Industrial Organization, 2020, vol. 56, issue 3, No 4, 489-513

Abstract: Abstract Consumers can only choose to see a movie if it is available in theaters. Explicitly taking into account movie theater availability, we estimate a structural model of movie demand with the use of U.S. movie data from 1995 to 2017. Estimation results indicate that the impact of theater availability on movie demand is both statistically and economically significant. We also find that movie budget predictions based on the model that incorporates theater availability is more consistent with the data, while the model that ignores theater availability on average over-predict production budgets.

Keywords: Movie demand; Theater availability; Demand estimation (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s11151-019-09706-5

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