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Cheap Tuesdays and the Demand for Cinema

Nicolas de Roos

University of Sydney

Jordi McKenzie

University of Sydney

March 9, 2011

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.

Number of Pages in PDF File: 43

Keywords: Motion pictures, cinema demand, discrete choice model

JEL Classification: L13, L82

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Date posted: March 23, 2011  

Suggested Citation

de Roos, Nicolas and McKenzie, Jordi, Cheap Tuesdays and the Demand for Cinema (March 9, 2011). Available at SSRN: https://ssrn.com/abstract=1789492 or http://dx.doi.org/10.2139/ssrn.1789492

Contact Information

Nicolas De Roos (Contact Author)
University of Sydney ( email )
University of Sydney
Sydney NSW 2006, NC
Jordi McKenzie
University of Sydney ( email )
Merewether H04
Sydney NSW, 2006
+61 2 90367816 (Phone)
Feedback to SSRN

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