Since the early 1970s, movie theaters in the United States have employed a pricing model of uniform
prices for differentiated goods. At any given theater, one price is charged for all movies, seven days a
week, 365 days a year. This pricing model is puzzling in light of the potential profitability of prices that
vary with demand characteristics. Another unique aspect of the motion-picture industry is the legal
regime that imposes certain constraints on vertical arrangements between distributors and retailers
(exhibitors) and attempts to facilitate competitive bidding for films. We explore the justifications for
uniform pricing in the industry and show their limitations. We conclude that exhibitors could increase
profits by engaging in variable pricing and that they could do so more easily if the legal constraints
on vertical arrangements are lifted.
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原文发布时间:2015/7/17
引用本文:
Barak Y. Orbach;Liran Einav.Uniform prices for differentiated goods: The case of the movie-theater industry.http://hftc.firstlight.cn/View.aspx?infoid=3522715&cb=Z06860000000.
发布时间:2015/7/17.检索时间:2024/12/16