Cross-selling in the US home video industry

• 成果类型: Article
• 署名作者: Cabral, Luis; Natividad, Gabriel
• 署名单位: New York University; Universidad de Piura
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12117
• 发表日期: 2016
• 页码: 29-47
• 关键词: line forcing contracts; price-discrimination; INFORMATION; MARKETS; demand; firm

摘要

We identify significant cross-selling effects in the home video industry: a 10% increase in the demand for a studio's old titles leads to a 4.7% increase in new title sales. We argue this is due to supply-side effects: studios with strong titles are better able to push other titles through retailers; and the latter push these additional supplies to consumers by means of lower prices and/or heavier advertising. Our strategy for identifying causality is based on star power effects: increases in old movie demand caused by recent success of movies with a similar cast and/or director.