Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Determinants of box office success: the impact of quality signals
AU - Elliott, Caroline
AU - Simmons, Robert
PY - 2008/9
Y1 - 2008/9
N2 - 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.
AB - 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.
KW - Advertising
KW - Critical reviews
KW - Film industry
U2 - 10.1007/s11151-008-9181-0
DO - 10.1007/s11151-008-9181-0
M3 - Journal article
VL - 33
SP - 93
EP - 111
JO - Review of Industrial Organization
JF - Review of Industrial Organization
SN - 0889-938X
IS - 2
ER -