We study the market for new (movie) DVDs in the United States. Our demand model captures seasonality, freshness (i.e. time between theatrical and DVD release), and state dependence. We also develop a structural model of dynamic competition in which studios balance waiting for high demand weeks,...

Researchers have recently developed models for determining which market conduct best describes observed data. We apply these techniques from the "new empirical industrial organization" literature to the competitive product line pricing decision, where a firm strategically prices its brands when...