Effects of Chain Affiliation in the Movie Theater Industry

In Kyung Kim

International Economic Journal, 2022, vol. 36, issue 1, 19-38

Abstract: In this paper, I empirically study the effect of chain affiliation on product variety and price in the movie theater industry. Using longitudinal data on Korean movie theaters, I find that movie variety in a theater increases by 3.2–5.5% after the theater joins a chain. Admission price, however, does not change after chain affiliation. These findings imply that consumers may benefit from the growing dominance of chain-affiliated theaters in recent decades. The results also suggest that the regulatory authorities should carefully examine the trade-off between the increase in market power and efficiency gains when evaluating the implications of chain affiliation.

Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:taf:intecj:v:36:y:2022:i:1:p:19-38

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DOI: 10.1080/10168737.2022.2029930

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