Vertical Integration in the Japanese Movie Industry (2007.10)

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CPDP- 29-E(PDF:254KB)	"Vertical Integration in the Japanese Movie Industry" (2007.10) Mitsuru SUNADA(Competition Policy Research Center, Japan Fair Trade Commission) This study examines the vertical integration in the Japanese movie industry, estimating the model of demand for movie attendance, and conducts a simulation analysis of the welfare effect of the hypothetical court decision in which major distributors were ordered to divest their theaters. According to the results, while vertical integration leads to higher prices, theaters owned by producers/distributors are highly assessed by consumers. It is concluded that the order of theater divestment in Japan will possibly reduce the welfare. JEL classification codes: L42; L22; L82 Keywords: Vertical Integration; Movie Theater; Discrete Choice Model

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Contents，Author

"Vertical Integration in the Japanese Movie Industry" (2007.10)
Mitsuru SUNADA(Competition Policy Research Center, Japan Fair Trade Commission)
This study examines the vertical integration in the Japanese movie industry, estimating the model of demand for movie attendance, and conducts a simulation analysis of the welfare effect of the hypothetical court decision in which major distributors were ordered to divest their theaters. According to the results, while vertical integration leads to higher prices, theaters owned by producers/distributors are highly assessed by consumers. It is concluded that the order of theater divestment in Japan will possibly reduce the welfare.
JEL classification codes: L42; L22; L82
Keywords: Vertical Integration; Movie Theater; Discrete Choice Model