IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Competition among movie theaters: an empirical investigation of the Toho–Subaru antitrust case

  • Mitsuru Sunada


This study assesses the 1951 Toho–Subaru antitrust merger case in the Japanese movie theater market. Using information regarding the location of theaters in the Tokyo metropolitan area, I examined the relationship between the number of attendees and the structure of the local market competition: a regression equation relating to the number of attendees and the local market structure was derived from a model of product differentiation, which incorporated the features of a movie theater market. The results revealed that nearby rival theaters had negative effects on other theaters’ attendance numbers, and these effects did not dissipate even where there was 10 km between each theater. Based on empirical results, it appears that the Tokyo High Court and the competition agency defined the geographic movie theater market as being smaller than it actually was. The results of this study suggest that the application of econometric analysis, combining geographic information, is useful in merger reviews of retail industries, such as movie theaters. Copyright Springer Science+Business Media New York 2012

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:
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Springer in its journal Journal of Cultural Economics.

Volume (Year): 36 (2012)
Issue (Month): 3 (August)
Pages: 179-206

in new window

Handle: RePEc:kap:jculte:v:36:y:2012:i:3:p:179-206
Contact details of provider: Web page:

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. Peter Davis, 2006. "Spatial competition in retail markets: movie theaters," RAND Journal of Economics, RAND Corporation, vol. 37(4), pages 964-982, December.
  2. Martin Gaynor & William B Vogt, 2003. "Competition among Hospitals," The Centre for Market and Public Organisation 03/087, Department of Economics, University of Bristol, UK.
  3. Darlene Chisholm & George Norman, 2012. "Spatial competition and market share: an application to motion pictures," Journal of Cultural Economics, Springer, vol. 36(3), pages 207-225, August.
  4. Raphael Thomadsen, 2005. "The Effect of Ownership Structure on Prices in Geographically Differentiated Industries," RAND Journal of Economics, The RAND Corporation, vol. 36(4), pages 908-929, Winter.
  5. Motta,Massimo, 2004. "Competition Policy," Cambridge Books, Cambridge University Press, number 9780521816632.
  6. Howard Smith, 2004. "Supermarket Choice and Supermarket Competition in Market Equilibrium," Review of Economic Studies, Oxford University Press, vol. 71(1), pages 235-263.
  7. Motta,Massimo, 2004. "Competition Policy," Cambridge Books, Cambridge University Press, number 9780521016919.
  8. repec:rje:randje:v:37:y:2006:i:4:p:964-982 is not listed on IDEAS
  9. Liran Einav, 2007. "Seasonality in the U.S. motion picture industry," RAND Journal of Economics, RAND Corporation, vol. 38(1), pages 127-145, 03.
  10. Frankl, Jennifer L., 1999. "An Analysis of Japanese Corporate Structure, 1915–1937," The Journal of Economic History, Cambridge University Press, vol. 59(04), pages 997-1015, December.
  11. Joris Pinkse & Margaret E. Slade & Craig Brett, 2002. "Spatial Price Competition: A Semiparametric Approach," Econometrica, Econometric Society, vol. 70(3), pages 1111-1153, May.
  12. Darlene C. Chisholm & Margaret S. McMillan & George Norman, 2006. "Product Differentiation and Film Programming Choice: Do First-Run Movie Theatres Show the Same Films?," NBER Working Papers 12646, National Bureau of Economic Research, Inc.
  13. Okazaki Tetsuji, 1993. "The Japanese Firm under the Wartime Planned Economy," Journal of the Japanese and International Economies, Elsevier, vol. 7(2), pages 175-203, June.
  14. Arturs Kalnins, 2006. "Markets: The U.S. Lodging Industry," Journal of Economic Perspectives, American Economic Association, vol. 20(4), pages 203-218, Fall.
  15. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
  16. Frederick Warren-Boulton & Serdar Dalkir, 2001. "Staples and Office Depot: An Event-Probability Case Study," Review of Industrial Organization, Springer, vol. 19(4), pages 467-479, December.
  17. Orbach, Barak Y. & Einav, Liran, 2007. "Uniform prices for differentiated goods: The case of the movie-theater industry," International Review of Law and Economics, Elsevier, vol. 27(2), pages 129-153.
  18. Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
  19. Daniel A. Ackerberg & Marc Rysman, 2005. "Unobserved Product Differentiation in Discrete-Choice Models: Estimating Price Elasticities and Welfare Effects," RAND Journal of Economics, The RAND Corporation, vol. 36(4), pages 771-788, Winter.
  20. Tetsuji Okazaki, 2000. "Role of Holding Companies in Prewar Japanese Economic Development: Rethinking Zaibatsu in Perspectives of Corporate Governance," CIRJE F-Series CIRJE-F-74, CIRJE, Faculty of Economics, University of Tokyo.
  21. Lawrence J. White, 2008. "The Role of Competition Policy in the Promotion of Economic Growth," Working Papers 08-19, New York University, Leonard N. Stern School of Business, Department of Economics.
  22. Ricard Gil, 2010. "An empirical investigation of the Paramount antitrust case," Applied Economics, Taylor & Francis Journals, vol. 42(2), pages 171-183.
Full references (including those not matched with items on IDEAS)

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

When requesting a correction, please mention this item's handle: RePEc:kap:jculte:v:36:y:2012:i:3:p:179-206. 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: (Sonal Shukla)

or (Christopher F. Baum)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.