A note on the relationship of mainstream and art house movie theaters

Müller, Christopher and Böhme, Enrico (2011): A note on the relationship of mainstream and art house movie theaters. Published in: Economics Bulletin , Vol. 31, No. 1 (4 January 2011): pp. 29-34.

Abstract

We use a set of German micro data to study the relationship between mainstream and art house movie theaters. We find that both types of cinema have a significant price effect within their own group, but there is no significant price effect between the two types. Furthermore, we provide an example for the biased results that occur, if both types of movie theaters are pooled into one regression. Doing so, we demonstrate that it is important, to carefully distinguish mainstream and art house facilities in empirical studies of the movie theater industry.

• Item Type: MPRA Paper
• Language: English
• Keywords: substitutability; complementarity; movie theater industry; Germany
• Subjects: L - Industrial Organization > L8 - Industry Studies: Services > L82 - Entertainment ; Media; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z19 - Other

References

Berauer, W. (2008) Filmstatistisches Jahrbuch 2008, Nomos: Baden-Baden.

Cameron, S. (1986) “The Supply and Demand for Cinema Tickets: Some U.K. Evidence” Journal of Cultural Economics 10, 38-62.

Davis, P. (2005) “The Effect of Local Competition on Admission Prices in the U.S. Motion Picture Exhibition Market” Journal of Law and Economics 48, 677-708.

Dewenter, R. and M. Westermann (2005) “Cinema Demand in Germany” Journal of Cultural Economics 29, 213-231.

Dixit, A.K. and J.E. Stiglitz (1977) “Monopolistic Competition and Optimal Product Diversity” American Economic Review 67, 297-308.

Eliashberg, J. (2005) “The Film Exhibition Business: Critical Issues, Practice, and Research” in: A Concise Handbook of Movie Industry Economics by C.C. Moul, Ed., Cambridge University Press: Cambridge, 138-162.

Fernández Blanco, V. and J.F. Baños Pino (1997) “Cinema Demand in Spain: A Cointegration Analysis” Journal of Cultural Economics 21, 57-75.

Filson, D., D. Switzer and P. Besocke (2005) “At the Movies: The Economics of Exhibition Contracts” Economic Inquiry 43, 354-369.

Gemser, G., M. Van Oostrum and M.A.A.M. Leenders (2007) “The Impact of Film Reviews on the Box Office Performance of Art House Versus Mainstream Motion Pictures” Journal of Cultural Economics 31, 43-63.

Kinowelt Filmverleih GmbH (2007) Allgemeine Geschäftsbedingungen in der Fassung vom 01.06.2007, URL: http://www.kinowelt.de/material/recht/AGB_KinoweltFilmverleih.pdf.

Koch, K.L. (2005) “Wirtschaftlichkeit: Arthaus Versus Multiplex”, RMC Rinke Medien Consult, Wuppertal.

Macmillan, P. and I. Smith (2001) “Explaining Post-War Cinema Attendance in Great Britain” Journal of Cultural Economics 25, 91-108.

Polig, S. (2003) “‘Hulk’ eröffnet den Preiskampf”, SpiegelOnline, 2 July 2003, URL: http://www.spiegel.de/kultur/kino/0,1518,255458,00.html.