Tacit collusion and movie release dates
Lagalo, Bryan Alan
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Movie studios rarely release two films with large budgets, wide theater releases, or similar genres on the same weekend. One possible explanation is that studios tacitly collude by spacing out movie release dates. This type of collusion can be categorized as an alternating-periods monopoly (APM), where firms take turns as a monopolist rather than collectively acting as a monopolist each period. Using duration analysis and a Weibull hazard function, I find evidence that, during the sample period 2005-2009, studios spaced-out releases of films costing more than $100 million, or that were released in more than 3,250 theaters, sequels, similar genres, or assigned a G-rating.