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

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  • Müller, Christopher
  • Böhme, Enrico

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.

Suggested Citation

  • Müller, Christopher & Böhme, Enrico, 2011. "A note on the relationship of mainstream and art house movie theaters," MPRA Paper 27908, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:27908
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    References listed on IDEAS

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    1. Darren Filson & David Switzer & Portia Besocke, 2005. "At the Movies: The Economics of Exhibition Contracts," Economic Inquiry, Western Economic Association International, vol. 43(2), pages 354-369, April.
    2. Ralf Dewenter & Michael Westermann, 2005. "Cinema Demand In Germany," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 29(3), pages 213-231, August.
    3. Gerda Gemser & Martine Oostrum & Mark Leenders, 2007. "The impact of film reviews on the box office performance of art house versus mainstream motion pictures," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 31(1), pages 43-63, March.
    4. Moul,Charles C. (ed.), 2005. "A Concise Handbook of Movie Industry Economics," Cambridge Books, Cambridge University Press, number 9780521843843, September.
    5. Davis, Peter, 2005. "The Effect of Local Competition on Admission Prices in the U.S. Motion Picture Exhibition Market," Journal of Law and Economics, University of Chicago Press, vol. 48(2), pages 677-708, October.
    6. Peter Macmillan & Ian Smith, 2001. "Explaining Post-War Cinema Attendance in Great Britain," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 25(2), pages 91-108, May.
    7. VÍctor Blanco & JosÉ BaÑos Pino, 1997. "Cinema Demand in Spain: A Cointegration Analysis," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 21(1), pages 57-75, March.
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    More about this item

    Keywords

    substitutability; complementarity; movie theater industry; Germany;
    All these keywords.

    JEL classification:

    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • Z19 - Other Special Topics - - Cultural Economics - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

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