Demand stochastics, supply adaptation, and the distribution of film earnings
A market is analysed in which demand is a stochastic process and supply is contingent on the expected level of demand - a model that provides a realistic depiction of the motion picture market where consumer demand is a process of discovery and information sharing, and the supply of theatre screens expands through contingent contracts to accommodate demand. This model predicts that motion picture earnings will deviate from a power law and instead be distributed according to an exponential of a power law due to finite-size effects in demand. Empirical analysis on a large sample of motion pictures finds significant deviation from the power law distribution and a remarkably good fit for the stretched exponential distribution.
Year of publication: |
2005
|
---|---|
Authors: | Walls, W. D. |
Published in: |
Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 12.2005, 10, p. 619-623
|
Publisher: |
Taylor & Francis Journals |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Screen wars, star wars, and sequels : nonparametric reanalysis of movie profitability
Walls, W. David, (2009)
-
Holding companies, market liquidity, and the development of the electric power industry
Schrade, William R., (2006)
-
Walls, W. David, (2007)
- More ...