How do your rivals' releasing dates affect your box office?

Fernanda Gutierrez-Navratil, Víctor Fernández-Blanco (), Luis Orea and Juan Prieto-Rodriguez ()

No AWP-04-2011, ACEI Working Paper Series from Association for Cultural Economics International

Abstract: In this paper, we study to what extent a movie's box office receipts are affected by the temporal distribution of rival films. We propose a theoretical model that analyses the effects of past, present and future releases on a film's results. Using this model we can analyse how rivals' release dates impact on others' box office revenues. This theoretical model also allows us to carry out some comparative statics by changing some relevant parameters such as time depreciation, film quality or the timeline of exhibition. We have tested the empirical implications of this model using information on the films released in five countries: the USA, the United Kingdom, Germany, France and Spain. In order to maintain a degree of homogeneity, we have constructed an unbalanced panel consisting of films that were released in at least three of these countries. The geographical dimension of our data set allows us to use panel data techniques to control for unobserved heterogeneity among the films released. This allows us to control for one of the most relevant features of the movie market, namely the presence of highly differentiated products.

Keywords: temporal competition; movie exhibition; film industry; panel data; unobserved heterogeneity; differentiated product (search for similar items in EconPapers)
JEL-codes: Z10 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2011-11, Revised 2011-11
New Economics Papers: this item is included in nep-com and nep-mkt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Journal Article: How do your rivals’ releasing dates affect your box office? (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:cue:wpaper:awp-04-2011

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