Learning via sequential market entry: Evidence from international releases of U.S. movies

Holloway, Isaac

doi:10.1016/j.jinteco.2016.10.008

Cited by 19 publications

(14 citation statements)

References 16 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Inspired by pioneering work by Evenett and Venables (2002) and Eaton, Eslava, Kugler, and Tybout (2008), ACCO developed and tested the notion of export experience and profit correlation across destinations as a way to learn profitability in multiple destinations. This mechanism has been adapted and extended both to explain facts on export dynamic patterns in specific contexts (as, for example, the international releases of U.S. movies, studied by Holloway, 2017) and to explain the process of firm internationalization more generally, as in Egger, Fahn, Merlo, and Wamser (2014), Conconi, Sapir, and Zanardi (2016), Chen, Senga, Sun, and Zhang (2018), Chen, Sun, and Zhang (2020), and Berlingieri, Marcolin, and Ornelas (2021). While this body of work has shown evidence of the core mechanism based on firms learning their own profitability abroad as they engage in exporting, none has integrated the product and destination dimensions in a single framework, as we do here.…”

Section: Introductionmentioning

confidence: 99%

Sequential Exporting Across Countries and Products

et al. 2021

View full text Add to dashboard Cite

How do exporters expand their product scope and geographical presence? We argue that new exporters are uncertain about their profitability in different countries and products, but learn it as they start to export. As a consequence, exporters add products and countries sequentially, in an interdependent process. Exploiting disaggregated data on French exporters, we find empirical support consistent with such a mechanism, where firms learn from their initial export experiences and then adjust their sales, number of products and destination countries accordingly. Our results indicate that part of the learning is firm-specific, and not merely product-or market-specific. Furthermore, we find that firms tend to expand in the sub-extensive margin first by widening product scope within a destination and later by entering new destinations; and that firms' core products are particularly resilient despite being used to "test the waters" when entering additional countries.

show abstract

Section: Introductionmentioning

confidence: 99%

Sequential Exporting Across Countries and Products

et al. 2021

View full text Add to dashboard Cite

show abstract

“…However, as pirate teams are still much more active on the American continent than in France and in other European countries, a (smaller) asymmetry is still likely to remain. Besides, the sequential release of U.S. movies in different countries is also used to help distributors to learn about their movies' quality from performance in successive markets (Holloway (2017)). Therefore, sequential releases may continue to be used, as this can reduce distribution costs.…”

Section: Perspectives On the Resultsmentioning

confidence: 99%

The Unintended Consequences of Antipiracy Laws on Markets with Asymmetric Piracy: The Case of the French Movie Industry

Bellégo

Nijs

2020

Information Systems Research

View full text Add to dashboard Cite

In many markets of the digital economy, some products are more prone to online piracy than some of their substitutes. These situations of asymmetric online piracy distort the competition between products. Using the French antipiracy law known as HADOPI (Haute Autorité pour la diffusion des œuvres et la protection des droits d'auteur sur internet) as a natural experiment, we study the asymmetric effects of online piracy on cinema admissions. Applying four estimation strategies at different levels of observation (town, movie, country, and consumer), we find that introduction of the law is associated with a 9% increase in the market share of American movies but that this increase occurs at the expense of other movies. These findings primarily originate from a high initial level of asymmetric piracy between American and other movies. This asymmetry was attenuated by the antipiracy law, resulting in a fiercer competition between movies and, as a side effect, in a decrease in the legal consumption of less-pirated products. These results have important implications for firms whose profits may be affected by legislation fighting piracy as well as for governments for the design of their policy.

show abstract

“…Morales et al (2011) also find that a firm's entry into a new destination is positively affected by its previous export experience in geographically or eco-nomically similar markets. Likewise, Albornoz et al (2012) and Holloway (2017) observe that a firm discovers its profitability as an exporter after actually engaging in exporting and then decides whether to enter into new markets.…”

Section: Exclusion Restrictions At the Sector Level: Learning In Expomentioning

confidence: 99%

“…In this paper, we propose new ERs that allow us to extend the HMR approach to product-level data. The new ERs are derived based on the recent literature on learning in exporting markets such as Albornoz et al (2012), Eaton et al (2007), Eaton et al (2014), Fernandes and Tang (2014), Holloway (2017), and Morales et al (2011). In these studies, firms learn about their chance in a prospective export market from two sources: i) the performance of other countries/firms in the same market for the same product, and ii) their own performance in other destinations for the same product.…”

Section: Introductionmentioning

confidence: 99%

Trade Elasticity: Estimates from Product-Level Data

Cheong

Kwak²,

Tang

2020

SSRN Journal

View full text Add to dashboard Cite

In a seminal paper, Helpman et al. (2008) demonstrate that accounting for self-selection and firm heterogeneity is crucial for obtaining unbiased estimates in the gravity equation. In this paper, we show how this insight helps solve the trade elasticity puzzle that, hitherto, trade elasticity estimates in the gravity equations have implied very small welfare gains from trade. To apply their approach to product-level data, we propose new exclusion restrictions based on the export learning literature. Our new estimates imply much larger welfare gains from trade than the previous literature suggested.

show abstract

Learning via sequential market entry: Evidence from international releases of U.S. movies

Cited by 19 publications

References 16 publications

Sequential Exporting Across Countries and Products

Sequential Exporting Across Countries and Products

The Unintended Consequences of Antipiracy Laws on Markets with Asymmetric Piracy: The Case of the French Movie Industry

Trade Elasticity: Estimates from Product-Level Data

Contact Info

Product

Resources

About