Sunday, June 1, 2014

Box Office Movie Sales: Real vs. Nominal

I am finishing up Naked Economics.  The author, Wheelan, makes a point that each year we seem to see records being broken with movie theater sales.  Yet he points out that this is somewhat misleading as ticket sales keep going up and up.   Thankfully Matthew McWinie has come up with a great exercise in using nominal versus real prices.  Basically he gives his students the top grossing films and then the CPI and asks them to figure out which one is the real winner.   According to Forbes, adjusted for inflation the real winner is still Gone with the Wind. 

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