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Cinema Food Restrictions Analysis

The document analyzes the practices of movie theaters in Guayaquil and Vía Samborondón/La Aurora regarding the prohibition of outside food and high prices for their own concessions. It discusses the impact of limited food options on consumer behavior, suggesting that allowing outside food with a tax could be a reasonable compromise. The analysis concludes that there is an abuse of market power as consumers are restricted from choosing their preferred food options.

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cristinacalderonf
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11 views2 pages

Cinema Food Restrictions Analysis

The document analyzes the practices of movie theaters in Guayaquil and Vía Samborondón/La Aurora regarding the prohibition of outside food and high prices for their own concessions. It discusses the impact of limited food options on consumer behavior, suggesting that allowing outside food with a tax could be a reasonable compromise. The analysis concludes that there is an abuse of market power as consumers are restricted from choosing their preferred food options.

Uploaded by

cristinacalderonf
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

Homework 1 parcial

1. ANALYZE THE CONDUCT OF MOVIE THEATERS OF PROHIBITING


ENTRANCE OF FOOD AND BEVERAGES AND SELLING THEIR OWN
FOOD AND BEVERAGES AT A HIGH PRICE.
2. GEOGRAPHICAL MARKET IS GUAYAQUIL AND VÍA
SAMBORONDÓN/LA AURORA.
3. ANALYSIS MUST INCLUDE: RELEVANT MARKET, SUBSTITUTES,
MARKET POWER, RESTRICTION IS REASONABLE OR NOT? IS THERE
ABUSE OF MARKET POWER?

Regarding the analysis usually this has a lot to do with the behavior of consumers, in the
relevant market cinemas have competitive pressure with the prices of meals, since they limit
the ability to raise or lower prices, the clear example of combos which offer several snacks at
a high price and after that they do not have variety, in this case the solution would be to give
combos with more gastronomic variety and have more accessible prices to the consumer, on
the other hand there are the substitute markets where the food area of the cinema is affected
and there are more cheaper food options and with much more variety in the food courts where
the consumer chooses what at the moment he wants, and that violating the rules of the cinema
they do their best and manage to enter those foods to the cinema, but in this case I have also
thought of a solution which would be that the restriction that cinemas should have on the
entry of food is that people who wish to enter food that is not part of the menu of the food
court of the cinema have to pay an extra tax for the food entered the area, since in that tax
would count not only the permit but we will also take into account that by letting other foods
enter this would cause more work to the cleaning staff of the cinema area therefore it is more
work, said this would have no doubt that people would accept to pay an additional for
entering other types of food.
Regarding the market power in this situation there is no doubt that although its prices are high
it is profitable to this day since it does not give the consumer more options than to consume
the snacks they offer, even with competitions around them and most consumers are
monotonously accustomed to consuming the menu offered by the cinema bar. And so in my
very personal opinion to this issue I consider that if there is abuse in the power of the market
as I said at the beginning these restrictions limit the consumer to not being able to choose the
foods of his liking.

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