The effects of removing gender-based price discrimination on movie demand: Estimates using smartphone location data

Abstract

Since 2021, an increasing number of movie complex firms in Japan have eliminated long-standing gender-based price discrimination by replacing discounts for only women with discounts for all customers. This study examines the impact of this discount change on movie demand. Using theater-level visit data by gender and a difference-in-differences strategy, I find increased movie demand for both males and females, indicating inter-gender interdependence of movie demand. A profit analysis shows that the average movie theater profit remains at the same level as that before the discount adjustment. Lastly, combining the difference-in-differences estimates with a random utility model reveals that joint movie consumption enhances paired customers' movie-watching utility.