Price Effects of Multimarket Contact Among Movie Chains in Small U.S. Metropolitan Areas
AbstractMovie theater chains are ubiquitous in major metropolitan areas of the U.S., with generally two or more of these large chains present. However in smaller metropolitan areas, we see far more variation in the role of these chains. This allows for an opportunity to see whether multimarket contact (MMC) among these firms has an impact on movie pricing in these smaller markets. In this paper, data on movie pricing, market structure, and income and population characteristics are obtained for 79 small metropolitan areas -- those with under 250,000 people -- which are not part of larger "consolidated" metropolitan areas. A crude measure of MMC is found to indeed be related to price increases in the smallest of these markets. JEL classification:
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Bibliographic InfoPaper provided by American University, Department of Economics in its series Working Papers with number 2013-15.
Date of creation: 2013
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Other versions of this item:
- Feinberg, Robert M., 2014. "Price effects of multimarket contact among movie chains in small US metropolitan areas," Economics Letters, Elsevier, vol. 123(1), pages 6-8.
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L8 - Industrial Organization - - Industry Studies: Services
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