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

Darlene C. Chisholm, Margaret S. McMillan, George Norman

NBER Working Paper No. 12646
Issued in October 2006
NBER Program(s):   IO

We present an empirical analysis of product differentiation using a new dynamic panel data set on film programming choice in a major U.S. metropolitan motion-pictures exhibition market. Using these data, we compute two measures of film programming choice which allow us to investigate the determinants of strategic product differentiation in a multi-characteristics space. Our evidence is consistent with the idea 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 ownership matters: theatres under common ownership make more similar programming choices than theatres with different owners.

(194 K)

Published: 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, vol. 34(2), pages 131-145, May.

This paper is available as PDF (194 K) or via email.

Acknowledgments

Machine-readable bibliographic record - MARC, RIS, BibTeX