Movie Variety and the City

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

In this article, I study the effect of entry and ownership structure on product variety within a city. Using longitudinal data on theaters in Korea, I find that the positive effect of entry on city-wide movie variety is limited only to the first few entrants. This finding, together with the observation that movie variety in a theater does not respond to entry, suggests that a theater's incentive to soften price competition by screening less popular movies not otherwise available in the city decreases as more theaters enter. I also find evidence that movie variety is greater in more concentrated cities, implying that a chain that owns multiple theaters in a city may differentiate the movie lineup offered in each theater more than when the theaters are individually owned in order to avoid cannibalization or to preempt entry.

Original languageEnglish
Article number20190398
JournalB.E. Journal of Economic Analysis and Policy
Volume20
Issue number3
DOIs
Publication statusPublished - Jul 1 2020

Keywords

  • movie theater industry
  • ownership structure
  • product variety

ASJC Scopus subject areas

  • Economics and Econometrics
  • Economics, Econometrics and Finance (miscellaneous)

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