Searching for the Concentration-Price Effect in the German Movie Theater Industry
24 Pages Posted: 8 Feb 2020
Date Written: May 11, 2009
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: Suggested Citation