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The Role of Reputation in Sequel Production

Author

Listed:
  • 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
    as

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