A Shacklean Approach to the Demand for Movies

Abstract

Film has a number of characteristics that define it as a commodity-type and hence distinguish it from other commodity-types.⁴ Not only is film non-diminishable in consumption (because it is consumed in the mind of the viewer), but also the images that make up a film are infinitely reproducible and, in the era of digital technology, reproducible at near zero marginal cost. Furthermore, each film is to some extent novel in that its constitutive images are each unique and so is the ordering of the images into the sequenced continuity that makes the film meaningful to (but not, ipso facto, liked by) the consumer.⁵ Hence, prior to the consumption of a film, consumers cannot have a complete idea of the visual and aural cinematic utility that they are going to experience, nor of their reaction to that experience. Films are thus experience goods: an experiential divide exists between the two mental states of awareness, namely expectation and realization, both of which entail a learning process based on previous experience (Nelson, 1974, p. 745). A final element in the ontology of film as a commodity is the rapidly diminishing utility of film in consumption. That is, once consumed in theatrical release, films are rarely revisited theatrically by consumers, who commonly prefer the anticipation of new cinematic pleasure to the repeat viewing of old pleasures.

Citation

Sedgwick, J. (2007), "A Shacklean Approach to the Demand for Movies", Bianchi, M. (Ed.) The Evolution of Consumption: Theories and Practices (Advances in Austrian Economics, Vol. 10), Emerald Group Publishing Limited, Leeds, pp. 77-91. https://doi.org/10.1016/S1529-2134(07)10004-1