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Movie Variety and the City

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  • Kim In Kyung

    (Department of Economics, Nazarbayev University, 010000, Astana, Kazakhstan)

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.

Suggested Citation

  • Kim In Kyung, 2020. "Movie Variety and the City," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(3), pages 1-26, July.
    • Handle: RePEc:bpj:bejeap:v:20:y:2020:i:3:p:26:n:8
    DOI: 10.1515/bejeap-2019-0398
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    References listed on IDEAS

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    More about this item

    Keywords

    movie theater industry; ownership structure; product variety;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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