Handling Saturation in Demand: Estimates From Theatrical-Run Motion Pictures

Topics:
Motion Pictures
Tags:
Industry,
Management,
St. Louis,
Strategy
Source:
Washington University in St. Louis

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Overview: This paper considers theory and evidence from the domestic theatrical movie industry regarding biases in estimation that arise when saturation in demand is ignored or approximated with a product's age. The underlying structural model and resulting partial reduced form model can both be readily generalized for other applications. Results indicate that mistreating the saturation process obscures potential information explaining cross-product differences in demand.

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Format: PDF | Size: 566KB | Date: Sep 2004 | Pages: 37

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