An Estimation of Demand for Cinema Function and Analysis of Factors Influencing It Case Study; Cinema Demand in Tehran

Document Type : Research Paper

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Abstract

Cinema demand in Tehran has been decreased during last 2 decades. Therefore, this paper is aimed to estimate the function of demand for cinema in Tehran based on the Tehran's time series data during 1985-2010 periods. This research tries to use ‍Case Study Research Method. Also according to Neo-Classic Demand Theory and econometric models is used Ordinary Least Square Technique (OLS) for demand function of cinema in Tehran. This estimation is carried out by Eviews-IV econometric modeling package.
In this research we have selected the best logarithmic equation as function of demand for cinema in Tehran after estimating some equations and testing them. All relevant test statistics indicated that there is relation between these variables. We start our analysis with the specification of several approaches for cinema demand. According to calculation all of cinema demands elasticity; we analyzed the effective factors on cinema demand in Tehran, such as price ticket, consumers' income index, substitute and supplementary goods 1985-2010 periods. However, in this study we found that the cinema demand is inversely related to the price and the income. Thus the cinema in Tehran as a cultural good may indeed be seen as a luxury one.

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