Search

This paper empirically examines the impact of competition in the television (TV) industry on the number of movie theaters, their attendance, and their box office revenues. Studies of firm entry usually focus on the impact of regulation on economic outcomes within an industry, thereby neglecting its impact on neighboring industries. Using changes in regulation in the Spanish local TV station industry, we estimate the impact of TV entry on the movie theater industry' between 1993 and 2005. Our findings show that local TV entry decreased the number of theaters and screens in a province, as well as movie attendance and box office revenues. (JEL LI 1, L43, L82), I. INTRODUCTION Entry and market structure studies have traditionally focused on how changes in market structure affect economic outcomes and surplus redistribution among market participants. While the literature has mainly [...]