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Validity of Rational Addiction Model for Cinema Demand in Turkey
(İstanbul Gelişim Üniversitesi Yayınları / Istanbul Gelisim University Press, 2021) Kaymaz, Volkan
This study examines the demand for cinema in Turkey using economic and other explanatory variables. The study includes annual data for the period 2009-2017 on 26 sub-regions of Turkey and a dynamic panel data analysis was performed. Furthermore, the validity of the rational addiction model developed by Becker and Murphy (1988) has been investigated for the Turkish cinema market and the role of addiction in cinema demand has been discussed. Estimation results from the dynamic panel data model show that the number of screen and the share of domestic films in total films are an important component in explaining cinema demand. Furthermore, the results showed that the demand for cinema is compatible with the rational addiction model.