Cinema Entry and Movie Availability in Regional Movie Markets

초록

In this paper, I study the impact of entry of cinemas on movie availability in a regional market and evaluate how consumers are affected by changes in movie availability after cinema entry. Examining 47 small and mid-sized local movie markets in Korea, I find that the likelihood of a movie being played in a local market increases only after entry of the first few cinemas. I also find evidence that it is enough for a market to have three cinemas to match the preferences of most consumers (95 percent) in the market.

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