Screening decisions of vertically integrated theaters in the Korean movie industry
Chung, Hoe Sang MIN KIM Yi, Gihwan
Chung, Hoe Sang
Yi, Gihwan
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Abstract
This paper investigates the effects of vertical integration on screening decisions using data from the Korean movie industry. We find that integrated theaters show their affiliated movies more than nonaffiliated movies, and more than nonintegrated theaters do. However, this gap reduces during the peak times of the day and after the opening week. Our evidence suggests that the integrated theaters’ screening decisions favorable to their own movies are better understood as the result of dealing with the incentive misalignment than as the result of foreclosing other movies.
Keywords
Number of movie showings, Vertical integration, Market foreclosure, Incentive misalignment, Korean movie industry
Source Title
Economics Letters
Publisher
Elsevier
Series/Report No.
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Date
2018-09
DOI
10.1016/j.econlet.2018.05.026
Type
Article