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Distribution Conventionality in the Movie Sector: An Econometric Analysis of Cinema Supply

Alan Collins, Antonello E. Scorcu and Roberto Zanola
Managerial and Decision Economics
Vol. 30, No. 8 (Dec., 2009), pp. 517-527
Published by: Wiley
Stable URL: http://www.jstor.org/stable/27735458
Page Count: 11
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Distribution Conventionality in the Movie Sector: An Econometric Analysis of Cinema Supply
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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.

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