By Jayoung Jeon
Critics and their reviews provide crucial information for consumers in many “experience goods” markets, and the movie market is one such market. Through their impact on the consumer’s film selection, critics’ reviews influence the first weekend box office performance (the influence effect). We hypothesize that the influence effect of critics’ reviews is different for foreign and domestic movies. Using the U.S. film industry as our empirical setting, we examine the effects of reviews on opening weekend revenues in the U.S. film industry. We find that, when the critics’ assessment of domestic movies is positive, people are discouraged from watching the movie. On the other hand, for foreign movies, the impact of positive reviews is found to be positive. We interpret this result as arising from the different target audiences for foreign and domestic movies. Further analysis of our data supports this hypothesis. We also find that people are more influenced to watch movies when they see multiple reviews than only a few of them. This positive impact of the number of critics’ reviews is greater for domestic than foreign movies, and greater for domestic art movies than domestic non-art movies.
Advisor: James Roberts | JEL Codes: L82, M37 | Tagged:
By Benjamin Jones
The World Marathon Majors (WMM) Series Prize was enacted in 2006 as a million dollar prize handed out annually to the top man and woman competing at five of the most important marathons. This paper considers the motivations behind setting up this prize, as well as the theoretical rationale for its existence and whether the empirical data supports these results. We find that the game theory model supports the ideas that the World Marathon Majors organizers state as their goals in creating the prize, but at the same time, there is not much empirical support as of yet to support any quantifiable changes within marathoning in the past few years. The regressions do not produce statistically significant data for finishing times decreasing even though the world record has been broken three times in these races since the implementation of the WMM. This may be due to the small number of observations and the fact that the series is so new. However, there are other areas of interest, such as an increase in World Record-breaking times or an increase in overall publicity, that may justify such a lucrative prize for these races. These topics are not included within the regressions and could be an area for further study.
Advisor: Curtis Taylor, Michelle Connolly | JEL Codes: C7, C73, L83 | Tagged: