Advanced Search
MyIDEAS: Login to save this paper or follow this series

Stochastic Market Structure: Concentration Measures and Motion Picture Antitrust

Contents:

Author Info

  • de Vany, Arthur
  • Kim, Cassey Lee Hong

Abstract

This paper examines the usefulness of concentration indices in characterizing the degree of competition in the motion picture industry. It shows that concentration ratios and the Herfindahl-Hirschman index give a misleading picture of the degree of competition in the industry. All these indices exhibit large fluctuations that make the common practice of calculating a static measure erroneous. Market shares are shown to follow a stochastic Pareto- Lévy motion in which the market shares of the leading distributors are unstable, and positions often change. We show that this stochastic industry structure implies that the expected value of the HHI is undefined (infinite!). The motion picture industry is (stochastically) concentrated but highly competitive. We argue that this is likely to be true of other industries with similar stochastic features.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://purl.umn.edu/30701
Download Restriction: no

Bibliographic Info

Paper provided by University of Manchester, Institute for Development Policy and Management (IDPM) in its series Centre on Regulation and Competition (CRC) Working papers with number 30701.

as in new window
Length:
Date of creation: 2003
Date of revision:
Handle: RePEc:ags:idpmcr:30701

Contact details of provider:
Postal: Harold Hankins Building, Precinct Centre, Booth Street West, Manchester, M13 9QH
Phone: +44-161-275-2800
Fax: +44-161-273-8829
Email:
Web page: http://www.sed.manchester.ac.uk/idpm
More information through EDIRC

Related research

Keywords: Industrial Organization;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Curry, B & George, K D, 1983. "Industrial Concentration: A Survey," Journal of Industrial Economics, Wiley Blackwell, vol. 31(3), pages 203-55, March.
  2. McCulloch, J Huston, 1978. "Continuous Time Processes with Stable Increments," The Journal of Business, University of Chicago Press, vol. 51(4), pages 601-19, October.
  3. Arthur De Vany & W. Walls, 1999. "Uncertainty in the Movie Industry: Does Star Power Reduce the Terror of the Box Office?," Journal of Cultural Economics, Springer, Springer, vol. 23(4), pages 285-318, November.
  4. Saving, Thomas R, 1970. "Concentration Ratios and the Degree of Monopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 11(1), pages 139-46, February.
  5. Robert Axtell, 1999. "The Emergence of Firms in a Population of Agents," Working Papers, Santa Fe Institute 99-03-019, Santa Fe Institute.
  6. De Vany, Arthur & Lee, Cassey, 2001. "Quality signals in information cascades and the dynamics of the distribution of motion picture box office revenues," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 25(3-4), pages 593-614, March.
  7. De Vany, Arthur & Walls, W David, 1996. "Bose-Einstein Dynamics and Adaptive Contracting in the Motion Picture Industry," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 106(439), pages 1493-1514, November.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ags:idpmcr:30701. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.