Evaluating the Efficiency of Iranian Movie Theaters’ Halls

Abstract

This research tries to investigate the economic performance of the public movie Theaters halls through quantitative data through estimation of efficiency. The results of calculating the technical efficiency of the halls showed that assuming of constant return to scale (CRS), a small percentage of cinemas are efficient and the rest are inefficient, and assuming a variable return to scale (VRS), a higher percentage of cinemas are efficient. Also, the average of technical efficiency of public movie theatre halls during this period was equal to 0.60. In addition, the results show that the most important reasons for the possible inefficiency of public cinemas on the supply side, the lack of use and screening of commercial and revenue-generating movies, and on the demand side, the lack of attention to the audience's taste.