Cheap Tuesdays and the demand for cinema

B-Tier
Journal: International Journal of Industrial Organization
Year: 2014
Volume: 33
Issue: C
Pages: 93-109

Authors (2)

de Roos, Nicolas (not in RePEc) McKenzie, Jordi (Macquarie University)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Many movie markets are characterised by extensive uniform pricing practices, hampering the ability to estimate price elasticities of demand. Australia presents a rare exception, with most cinemas offering cheap Tuesday ticket prices. We exploit this feature to estimate a random coefficients discrete choice model of demand for the Sydney region in 2007. We harness an extensive set of film, cinema, and time-dependent characteristics to build a rich demand system. Our results are consistent with a market expansion effect from the practice of discounted Tuesday tickets, and suggest that cinemas could profit from price dispersion by discounts based on observable characteristics.

Technical Details

RePEc Handle
repec:eee:indorg:v:33:y:2014:i:c:p:93-109
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-25