Oversupply of Movie Theater Seats Revealed, Impacting Industry Efficiency.
The article explores how firms in a market decide how much to supply in order to increase their market share while avoiding excess supply costs. The researchers created a model to analyze this in an oligopoly market with fixed prices. They found conditions that lead to either efficient supply or oversupply. By applying their model to the Korean movie theater industry, they discovered an oversupply of seating capacity.