Admission Prices in the German Motion Picture Exhibition Market : Estimating Quantitative Effects of Cinemas in Large German Cities

• Main Author: Elsner, Dominik
• Format: Others
• Language: English
• Published: Umeå universitet, Nationalekonomi 2017
• Subjects: Economics; Nationalekonomi
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-141289

This Thesis aims to estimate the quantitative effect of the number of cinemas on ticket prices. The analysis uses a dataset comprising German cities with more than 200,000 inhabitants and non-monopolistic market conditions. Furthermore, the determining factors for the number of cinemas in those cities are also analyzed. For both questions, a panel data set containing those cities for the time period 2007-2016 was studied by means of panel regression with fixed effects. The results suggest even smaller effects that cinema numbers have on ticket prices for Germany than found by Davis (2005) in his seminal paper for the US. In addition, cinema numbers are mostly affected by labor costs. Against theoretic expectation, past revenue data is estimated to have detrimental effects on cinema numbers.