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The Role of Reputation in Sequel Production

Author

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  • Khac Minh Duc Do

    (TWS Partners, 10117 Berlin, Germany)

  • Dmitriy Knyazev

    (Department of Business Decisions and Analytics, University of Vienna, Oskar-Morgenstern-Platz 1, 1180 Vienna, Austria)

Abstract

This paper develops a simple model of sequel production for experience goods, showing how reputation shapes a producer’s incentives. Producers differ in productivity, which determines how much effort they invest. A sequel is made only if the previous installment exceeds a quality threshold, capturing the idea that consumers base future consumption on past success. Although high-productivity producers create higher-quality originals and sequels, the conditioning on successful originals still makes sequels, on average, worse than their predecessors. This aligns with evidence of sequel underperformance in media markets.

Suggested Citation

  • Khac Minh Duc Do & Dmitriy Knyazev, 2025. "The Role of Reputation in Sequel Production," Games, MDPI, vol. 16(3), pages 1-7, May.
    • Handle: RePEc:gam:jgames:v:16:y:2025:i:3:p:23-:d:1651133
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    References listed on IDEAS

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    1. David A. Reinstein & Christopher M. Snyder, 2005. "The Influence Of Expert Reviews On Consumer Demand For Experience Goods: A Case Study Of Movie Critics," Journal of Industrial Economics, Wiley Blackwell, vol. 53(1), pages 27-51, March.
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    4. Gerda Gemser & Martine Oostrum & Mark Leenders, 2007. "The impact of film reviews on the box office performance of art house versus mainstream motion pictures," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 31(1), pages 43-63, March.
    5. Carl Shapiro, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(4), pages 659-679.
    6. Steven Tadelis, 2002. "The Market for Reputations as an Incentive Mechanism," Journal of Political Economy, University of Chicago Press, vol. 110(4), pages 854-882, August.
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