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Spatial Competition and market Share: An Application to Motion Pictures

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  • Darlene C. Chisolm
  • George Norman

Abstract

This paper presents an empirical assessment of movie theatre attendance in two major metropolitan markets and provides strong support for the importance of spatial characteristics in determing attendance. We consider the hypothesis that attendance at particular movie theatres reflects a tension between two effects: a negative competion effect and a positive agglomeration effect. We find evidence that the competition effect dominates. Further, we identify a pattern of systematic spatial decay in the impact of this effect on demand.

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File URL: http://ase.tufts.edu/econ/research/documents/2012/normanSpatialCompetition.pdf
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Bibliographic Info

Paper provided by Department of Economics, Tufts University in its series Discussion Papers Series, Department of Economics, Tufts University with number 0763.

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Date of creation: 2011
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Handle: RePEc:tuf:tuftec:0763

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Cited by:
  1. Mitsuru Sunada, 2012. "Competition among movie theaters: an empirical investigation of the Toho–Subaru antitrust case," Journal of Cultural Economics, Springer, vol. 36(3), pages 179-206, August.
  2. Fernanda Gutierrez-Navratil & Victor Fernandez-Blanco & Luis Orea & Juan Prieto-Rodriguez, 2014. "How do your rivals’ releasing dates affect your box office?," Journal of Cultural Economics, Springer, vol. 38(1), pages 71-84, February.

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