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

36 Pages Posted: 20 Nov 2006 Last revised: 23 Jul 2022

See all articles by Darlene C. Chisholm

Darlene C. Chisholm

Suffolk University

Margaret McMillan

Tufts University - Department of Economics; International Food Policy Research Institute (IFPRI); National Bureau of Economic Research (NBER)

George Norman

Tufts University - Department of Economics

Date Written: October 2006

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.

Suggested Citation

Chisholm, Darlene C. and McMillan, Margaret and Norman, George, Product Differentiation and Film Programming Choice: Do First-Run Movie Theatres Show the Same Films? (October 2006). NBER Working Paper No. w12646, Available at SSRN: https://ssrn.com/abstract=940595

Darlene C. Chisholm

Suffolk University ( email )

Department of Economics
8 Ashburton Place
Boston, MA 02108
United States
617-305-1932 (Phone)
617-994-4216 (Fax)

HOME PAGE: http://www.suffolk.edu/college/3255.html

Margaret McMillan (Contact Author)

Tufts University - Department of Economics ( email )

Medford, MA 02155
United States

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

George Norman

Tufts University - Department of Economics ( email )

Medford, MA 02155
United States

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