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Determinants of box office success: the impact of quality signals

Research output: Contribution to journalJournal article

Published
<mark>Journal publication date</mark>09/2008
<mark>Journal</mark>Review of Industrial Organization
Issue number2
Volume33
Number of pages19
Pages (from-to)93-111
Publication statusPublished
Original languageEnglish

Abstract

This paper analyses the roles of various quality signals in the demand for cinema attendance in the United Kingdom. Estimation of a three-stage least squares model with data for 527 films released in the United Kingdom shows that the impacts of advertising and critical reviews on box office revenues vary both in channels and magnitudes of impact. Our model treats total advertising as endogenous, alongside the number of opening screens and total box office revenues, while critical reviews are considered exogenous. Our results show that total advertising affects total box office revenue while responding endogenously to critical reviews.