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Product Differentiation and Film Programming Choice: Do First-Run Movie Theatres Show the Same Films?

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  • Darlene C. Chisholm
  • Margaret S. 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.

Suggested Citation

  • Darlene C. Chisholm & Margaret S. McMillan & George Norman, 2005. "Product Differentiation and Film Programming Choice: Do First-Run Movie Theatres Show the Same Films?," Discussion Papers Series, Department of Economics, Tufts University 0523, Department of Economics, Tufts University.
  • Handle: RePEc:tuf:tuftec:0523
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    Cited by:

    1. 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.
    2. 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.
    3. Wan, Xing & Chen, Jing & Chen, Bintong, 2020. "Exploring service positioning in platform-based markets," International Journal of Production Economics, Elsevier, vol. 220(C).
    4. Ricard Gil & Fernanda Gutierrez-Navratil, 2017. "Does Television Entry Decrease The Number Of Movie Theaters?," Economic Inquiry, Western Economic Association International, vol. 55(2), pages 736-756, April.
    5. 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.
    6. Darlene Chisholm & George Norman, 2012. "Spatial competition and market share: an application to motion pictures," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 36(3), pages 207-225, August.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. Stoneman, Paul, 2011. "Soft Innovation: Economics, Product Aesthetics, and the Creative Industries," OUP Catalogue, Oxford University Press, number 9780199697021, April.
    12. Darlene C. Chisholm & George Norman, 2006. "When to Exit a Product: Evidence from the U. S. Motion-Picture Exhibition Market," American Economic Review, American Economic Association, vol. 96(2), pages 57-61, May.
    13. Minha Hwang & Bart J. Bronnenberg & Raphael Thomadsen, 2010. "An Empirical Analysis of Assortment Similarities Across U.S. Supermarkets," Marketing Science, INFORMS, vol. 29(5), pages 858-879, 09-10.
    14. 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.
    15. 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.
    16. Richard D. Wang & J. Myles Shaver, 2014. "Competition-driven repositioning," Strategic Management Journal, Wiley Blackwell, vol. 35(11), pages 1585-1604, November.

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    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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