This paper examines how vertical integration affects non-price efficiency in the movie theater industry. Adopting a discrete choice framework, we derive consumer welfare under capacity constraints and fixed prices, and show that allocating capacity proportionally to demand is efficient. Applying our approach to estimating the efficiency of movie theaters’ seat allocations, we show that integrated theaters may be more efficient than non-integrated ones at picking movies to screen and allocating seats across them. We propose a theoretical mechanism behind these results. Specifically, we show that integrated theaters have higher incentives to acquire demand information and hence can be more efficient in allocating the seats.

中文翻译：

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纵向整合会提高非价格效率吗？电影院行业的证据

本文研究了垂直整合如何影响电影院行业的非价格效率。通过采用离散选择框架，我们在容量约束和固定价格条件下得出了消费者福利，并表明按需求按比例分配容量是有效的。应用我们的方法来估计电影院座位分配的效率，我们表明，在选择放映电影并在其间分配座位时，综合剧院可能比非综合剧院更有效率。我们提出了这些结果背后的理论机制。具体而言，我们表明，综合影院具有更高的动力来获取需求信息，因此可以更有效地分配座位。