000 01726nam a22001577a 4500
999 _c527129
_d527129
008 240805b ||||| |||| 00| 0 eng d
100 _aChen, Luming, Yi, Lisa Xuejie and Yu,Chuan
_956340
245 _aThe welfare effects of vertical integration in china's movie industry
260 _aAmerican Economic Journal: Microeconomics
300 _a16(2). May, 2024: p.204-235
520 _aThis paper investigates the welfare effects of vertical integration in China's movie industry. We leverage data covering all theaters and 423 popular movies in China during 2014–2018. We find no evidence of integrated movies being foreclosed to rival theaters. Integrated theaters show movies for longer, allocate more screenings, and charge lower prices. We estimate a model of consumers' demand and theaters' screening decisions. Integrated theaters internalize a substantial fraction of their upstream companies' profits. Vertical integration mitigates distortions from revenue-sharing contracts and steers demand favoring integrated movies. Overall, vertical integration increases consumer surplus with considerable heterogeneity across markets.- Reproduced https://www.aeaweb.org/articles?id=10.1257/mic.20210320
650 _aVertical integration, Movie industry, Theater performance, Screening allocation, Consumer demand, Revenue-sharing contracts, Foreclosure effects, Price strategy, Integrated theaters, Upstream profits, Demand steering, Welfare analysis, Consumer surplus, Market heterogeneity, Industry structure, Chinese cinema, Economic modeling, Contract distortion, Media economics, Integration effect
_956341
773 _aAmerican Economic Journal: Microeconomics
906 _aMASS MEDIA
942 _cAR