Price Effects of Multimarket Contact Among Movie Chains in Small U.S. Metropolitan Areas
Movie 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:
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.:
- William N. Evans & Ioannis N. Kessides, 1994. "Living by the "Golden Rule": Multimarket Contact in the U. S. Airline Industry," The Quarterly Journal of Economics, Oxford University Press, vol. 109(2), pages 341-366.
- Jans, Ivette & Rosenbaum, David I., 1997. "Multimarket contact and pricing: Evidence from the U.S. cement industry," International Journal of Industrial Organization, Elsevier, vol. 15(3), pages 391-412, May.
- Scott, John T, 1982. "Multimarket Contact and Economic Performance," The Review of Economics and Statistics, MIT Press, vol. 64(3), pages 368-75, August.
- B. Douglas Bernheim & Michael D. Whinston, 1990. "Multimarket Contact and Collusive Behavior," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 1-26, Spring.
- Davis, Peter, 2005. "The Effect of Local Competition on Admission Prices in the U.S. Motion Picture Exhibition Market," Journal of Law and Economics, University of Chicago Press, vol. 48(2), pages 677-708, October.
- Böhme Enrico & Müller Christopher, 2011.
"Searching for the Concentration-Price Effect in the German Movie Theater Industry,"
Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik),
De Gruyter, vol. 231(4), pages 479-493, August.
- Böhme, Enrico & Müller, Christopher, 2009. "Searching for the Concentration-Price Effect in the German Movie Theater Industry," MPRA Paper 15315, University Library of Munich, Germany.
- Philip M. Parker & Lars-Hendrik Roller, 1997. "Collusive Conduct in Duopolies: Multimarket Contact and Cross-Ownership in the Mobile Telephone Industry," RAND Journal of Economics, The RAND Corporation, vol. 28(2), pages 304-322, Summer.
- Feinberg, Robert M., 1984. "Mutual forbearance as an extension of oligopoly theory," Journal of Economics and Business, Elsevier, vol. 36(2), pages 243-249, May.
- Corwin D. Edwards, 1955. "Conglomerate Bigness as a Source of Power," NBER Chapters, in: Business Concentration and Price Policy, pages 331-359 National Bureau of Economic Research, Inc.
- Ciliberto, Federico & Williams, Jonathan, 2010. "Does Multimarket Contact Facilitate Tacit Collusion? Inference on Conjectural Parameters in the Airline Industry," MPRA Paper 24888, University Library of Munich, Germany.
- Heggestad, Arnold A & Rhoades, Stephen A, 1978. "Multi-Market Interdependence and Local Market Competition in Banking," The Review of Economics and Statistics, MIT Press, vol. 60(4), pages 523-32, November.
When requesting a correction, please mention this item's handle: RePEc:amu:wpaper:2013-15. 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: (Thomas Meal)
If references are entirely missing, you can add them using this form.