Searching for the Concentration-Price Effect in the German Movie Theater Industry
Enrico Böhme () and
Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2011, vol. 231, issue 4, pages 479-493
The empirical relationship between market concentration and prices has been well established for a long time and for numerous industries. Recently itwas confirmed for the USmovie theater industry. This paper investigates, whether such a price-concentration relationship can be found on local cinema markets in Germany as well, focusing on up-to-date mainstream movies. First, we develop a model of monopolistic pricing and estimate its parameters using data of monopoly markets from a new set of German micro data. Then we apply the estimated model to simulate monopoly prices on local markets with two or more operators and compare them to the prices actually observed in these markets. We find no significant difference in admission prices, which puts our study in contrast to the results found on local US markets. Searching for an explanation, we test whether movie theater operators even though being located in the same geographic area, are local monopolists, but find no hint of that, either.
Keywords: Price-concentration study; cinema pricing (search for similar items in EconPapers)
JEL-codes: L11 L82 R32 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://www.wiso-net.de/webcgi?START=A60&DOKV_DB=ZE ... E2636&DOKV_HS=0&PP=1 Main text (application/pdf)
http://search.ebscohost.com/login.aspx?direct=true ... 2332&site=ehost-live Main text (application/pdf)
Access via EBSCOhost Econlit - http://www.ebscohost.com/
Working Paper: Searching for the Concentration-Price Effect in the German Movie Theater Industry (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:jns:jbstat:v:231:y:2011:i:4:p:479-493
Access Statistics for this article
Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik) is currently edited by August
More articles in Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik) from Justus-Liebig University Giessen, Department of Statistics and Economics Contact information at EDIRC.
Series data maintained by Peter Winker ().