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Spatial competition and market share: an application to motion pictures

  • Darlene Chisholm

    ()

  • George Norman

    ()

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 determining attendance. We consider the hypothesis that attendance at a particular movie theatre reflects a tension between two effects: a negative competition 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. Copyright Springer Science+Business Media New York 2012

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File URL: http://hdl.handle.net/10.1007/s10824-012-9168-4
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Article provided by Springer in its journal Journal of Cultural Economics.

Volume (Year): 36 (2012)
Issue (Month): 3 (August)
Pages: 207-225

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Handle: RePEc:kap:jculte:v:36:y:2012:i:3:p:207-225
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100284

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