Karnataka caps cinema ticket prices at Rs 200..

After much demand and discussion, Karnataka govt in its recent budget capped the cinema tickets at Rs 200:

Movie tickets in Karnataka will now cost no more than Rs 200, the Karnataka government announced in the state budget on Wednesday.

The move comes as part of the state government’s attempts to develop the film industry in Karnataka. Along with the cap on tickets, the state has also announced that a film city will be set up in Mysuru for the development of Kannada film industry.

The Chief Minister announced a “policy for implementation of uniform admission fee in all cinema theatres, including multiplexes, in the State,” and said that the maximum admission fee will be Rs 200.

One just recalled a previous post which discussed what economics has to say about these caps? Ideally these caps are inefficient and cinema halls should have done something. THere is little dount that cinema viewing has become way too costly and there seems to be a cartel amidst competing halls.
They have not taken any measures to lower prices despite repeated requests. Could there have been better measures like incentivizing low cost cinemas to enter the market?
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