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Antitrust and Pricing in the Motion Picture Industry


  • Barak Orbach

    (The University of Michigan Law School)


Few industries have experienced the same degree of antitrust scrutiny and litigation as the motion picture industry. Nevertheless, the pricing structure of movie tickets has never been a product of free market forces. Since the early 1970s, ticket pricing has been particularly puzzling: At any given theater, admission fees are uniform across movies and over time. This Article studies the history of the industry's pricing systems in their legal, economic, and technological contexts. It shows that, despite intensive antitrust scrutiny and litigation, forces with considerable market power have always shaped the industry's pricing systems. The Article studies the present pricing regime and explores the economic justifications for uniform pricing, concluding that none of the justifications is sound. The Article argues that vertical restraints, which are illegal under present antitrust laws, have at least some impact on the persistence of the present pricing regime. It further argues that the current prohibition against distributors' intervention in ticket pricing is undesirable and that, given the idiosyncratic characteristics of the industry, a coordinated transition to a variable pricing could be desirable.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Barak Orbach, "undated". "Antitrust and Pricing in the Motion Picture Industry," American Law & Economics Association Annual Meetings 1051, American Law & Economics Association.
  • Handle: RePEc:bep:alecam:1051

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    References listed on IDEAS

    1. Bowles, Roger, 1994. "The Structure of the Legal Profession in England and Wales," Oxford Review of Economic Policy, Oxford University Press, vol. 10(1), pages 18-33, Spring.
    2. Carr, Jack L & Mathewson, G Frank, 1988. "Unlimited Liability as a Barrier to Entry," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 766-784, August.
    3. Benham, Lee & Benham, Alexandra, 1975. "Regulating Through the Professions: A Perspective on Information Control," Journal of Law and Economics, University of Chicago Press, vol. 18(2), pages 421-447, October.
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    Cited by:

    1. Jehoshua Eliashberg & Anita Elberse & Mark A.A.M. Leenders, 2006. "The Motion Picture Industry: Critical Issues in Practice, Current Research, and New Research Directions," Marketing Science, INFORMS, vol. 25(6), pages 638-661, 11-12.
    2. Samuel Cameron, 2011. "Cinema," Chapters,in: A Handbook of Cultural Economics, Second Edition, chapter 12 Edward Elgar Publishing.
    3. Joan Calzada & Tommaso M. Valletti, 2012. "Intertemporal Movie Distribution: Versioning When Customers Can Buy Both Versions," Marketing Science, INFORMS, vol. 31(4), pages 649-667, July.
    4. Ricard Gil, 2015. "Does Vertical Integration Decrease Prices? Evidence from the Paramount Antitrust Case of 1948," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 162-191, May.
    5. Chien-Ping Chen, 2009. "A Puzzle or a Choice: Uniform Pricing for Motion Pictures at the Box," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 37(1), pages 73-85, March.

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