Working Paper: NBER ID: w12646
Authors: Darlene C. Chisholm; Margaret S. McMillan; George Norman
Abstract: 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.
Keywords: No keywords provided
JEL Codes: C33; L11; L82
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| geographic proximity (R12) | less similar film programming choices (L82) |
| seasonal demand (J23) | similarity in programming choices (C88) |
| ownership structure (G32) | more similar programming choices (C78) |