Searching for the Concentration-Price Effect in the German Movie Theater Industry

24 Pages Posted: 8 Feb 2020

See all articles by Enrico Boehme

Enrico Boehme

University of Marburg; Chair of Public Finance

Christopher Mueller

Department of Economics, Goethe-University

Date Written: May 11, 2009

Abstract

This paper investigates whether a price-concentration relationship can be found on local cinema markets in Germany. First, we test a model of monopolistic pricing using a new set of German micro data and find no significant difference in admission prices on monopoly and oligopoly markets. In a next step, we test whether this can be explained by the existence of local monopolies, but find no hint of that. Implicit or explicit collusion among cinema operators might explain our observations.

Keywords: L11, L82, R32

JEL Classification: price-concentration study, cinema pricing

Suggested Citation

Boehme, Enrico and Mueller, Christopher, Searching for the Concentration-Price Effect in the German Movie Theater Industry (May 11, 2009). Available at SSRN: https://ssrn.com/abstract=1407562 or http://dx.doi.org/10.2139/ssrn.1407562

Enrico Boehme

University of Marburg ( email )

Universitätsstrasse 24
D-35032 Marburg, D-35032
Germany

Chair of Public Finance ( email )

Mertonstrasse 17-25
Frankfurt am Main, D-60325
Germany

HOME PAGE: http://www.wiwi.uni-frankfurt.de/professoren/weichenrieder/

Christopher Mueller (Contact Author)

Department of Economics, Goethe-University ( email )

United States

HOME PAGE: http://www.wiwi.uni-frankfurt.de/professoren/weichenrieder/

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