A note on the relationship of mainstream and art house movie theaters

We use a set of German micro data to study the relationship between mainstream and art house movie theaters. We find that both types of cinema have a significant price effect within their own group, but there is no significant price effect between the two types. Furthermore, we provide an example for the biased results that occur, if both types of movie theaters are pooled into one regression. Doing so, we demonstrate that it is important, to carefully distinguish mainstream and art house facilities in empirical studies of the movie theater industry.