When to Exit a Product: Evidence from the U.S. Motion-Pictures Exhibition Market

Darlene Chisholm and George Norman ()

No 522, Discussion Papers Series, Department of Economics, Tufts University from Department of Economics, Tufts University

Abstract: When is it optimal for a multi-product firm to exit a product? We analyze strategic product exit using data on motion-pictures exhibition choices in a major metropolitan first-run market to estimate the survivor function for films at a given theatre. This analysis indicates that a film’s survival at a particular theatre is affected by intra-firm relative performance and interfirm competitive pressures. We find that theatres within chains avoid business stealing. Preliminary analysis further suggests that theatres compete for market share with neighboring theatres by increasing the time to exit when the competing theatre is owned by a different chain.

Date: 2005
New Economics Papers: this item is included in nep-com and nep-tid
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Journal Article: When to Exit a Product: Evidence from the U. S. Motion-Picture Exhibition Market (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:tuf:tuftec:0522

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