nep-cul New Economics Papers
on Cultural Economics
Issue of 2013‒05‒05
two papers chosen by
Roberto Zanola
University Amedeo Avogadro

  1. Word-of-Mouth in Movies with Platform Release: Theory and Evidence By Yijuan Chen; Xiaojing Ma; Qiang Pan
  2. Fair re-valuation of wine as an investment By Fabian Y.R.P. Bocart; Christian M. Hafner; ;

  1. By: Yijuan Chen; Xiaojing Ma; Qiang Pan
    Abstract: We study the word-of mouth effect on movies with platform release, a common marketing strategy in the motion picture industry. We construct a theoretical model which shows that the word-of-mouth effect together with a sliding-percentage contract between the movie distributor and exhibitors gives rise to the usage of platform release. Using the data in the U.S. motion picture industry from 2000 to 2005, we quantify the word-of mouth sales and estimate the information transmission process in the movies featuring platform release.
    Keywords: Word-of-Mouth, Platform Release, U.S.Motion Picture Industry
    JEL: L82 M31
    Date: 2013–04
  2. By: Fabian Y.R.P. Bocart; Christian M. Hafner; ;
    Abstract: The prices of wine is a key topic for market participants interested in valuing their stock, including dealers, restaurants or consumers who may be interested in optimizing their purchases. As a closely related issue, re-valuation is the need to regularly update the value of a stock. This need is especially met by fund managers in the growing industry of wine as an investment. In this case, fair-value measurement is compulsory by law. We briefly review methods available to funds and introduce a new quantitative method aimed at meeting IFRS 13 compliance for fair valuation. Using auction data, we apply our method to compute current fair value of a basket of wines.
    Keywords: IFRS13, hedonic regression, repeated sales, wine investment
    JEL: C14 C43 M40 G12
    Date: 2013–04

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