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Product differentiation and film-programming choice: do first-run movie theatres show the same films?

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  • Darlene Chisholm
  • Margaret McMillan
  • George Norman

Abstract

We present an empirical analysis of product differentiation using a rich new dynamic panel data set on film programming choice in a major U.S. metropolitan motion-pictures exhibition market. These data allow us to investigate the determinants of strategic product differentiation in a multicharacteristics space. We find evidence of stability in the degree of product differentiation over time, but also find that the degree of product differentiation between theatre pairs reflects a balance between strategic concerns and contractual constraints. Similarity in one dimension is offset by differentiation in others. Finally, we find that theatres under common ownership make more similar programming choices than theatres with different owners.
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  • Darlene Chisholm & Margaret McMillan & George Norman, 2010. "Product differentiation and film-programming choice: do first-run movie theatres show the same films?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 34(2), pages 131-145, May.
    • Handle: RePEc:kap:jculte:v:34:y:2010:i:2:p:131-145
    DOI: 10.1007/s10824-010-9118-y
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    6. Mitsuru Sunada, 2012. "Competition among movie theaters: an empirical investigation of the Toho–Subaru antitrust case," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 36(3), pages 179-206, August.
    7. Alan Collins & Antonello E. Scorcu & Roberto Zanola, 2009. "Distribution conventionality in the movie sector: an econometric analysis of cinema supply," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(8), pages 517-527.
    8. Darlene Chisholm & Margaret McMillan & George Norman, 2010. "Product differentiation and film-programming choice: do first-run movie theatres show the same films?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 34(2), pages 131-145, May.
    9. 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.
    10. Cosman, Jacob & Schiff, Nathan, 2019. "Delivery in the city: evidence on monopolistic competition from New York restaurants," MPRA Paper 96617, University Library of Munich, Germany.
    11. Ioannides, Yannis M. & Soetevent, Adriaan R., 2007. "Social networking and individual outcomes beyond the mean field case," Journal of Economic Behavior & Organization, Elsevier, vol. 64(3-4), pages 369-390.
    12. Gilbert Metcalf & Jongsang Park, 2007. "A comment on the role of prices for excludable public goods," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(6), pages 685-698, December.
    13. Zhang, Wenhui & Shi, Guanming, 2012. "An Exploration of Product Choices in U.S. Biotech Corn Seed Market," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124758, Agricultural and Applied Economics Association.
    14. Dapeng Liu & Pascal Courty, 2022. "Some economics of movie exhibition: increasing returns and Imax revenue premium," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 46(4), pages 597-634, December.
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    16. Hwang, M. & Bronnenberg, B.J. & Thomadsen, R., 2010. "An empirical analysis of assortment similarities across U.S. supermarkets," Other publications TiSEM adc990b3-1d5b-4fab-8679-a, Tilburg University, School of Economics and Management.
    17. Jing Chen & Xing Wan & Jing Yang, 2023. "Superstar effects in a platform-based local market: The role of customer usage of online-to-offline platforms and spatial agglomeration," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-16, December.
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    19. Schiff, Nathan & Cosman, Jacob & Dai, Tianran, 2023. "Delivery in the city: Differentiated products competition among New York restaurants," Journal of Urban Economics, Elsevier, vol. 134(C).
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    More about this item

    Keywords

    Product differentiation; Similarity index; Motion-pictures industry studies; L11; C33; L82;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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