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On the application of Bayesian credibility theory in movie rankings

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  • Palash Ranjan Das
  • Gopal Govindasamy

Abstract

Credibility theory is a branch of actuarial science devoted to quantify how unique a particular outcome will be when compared to an outcome deemed as typical. In this paper, we will examine the application of the principles of Bayesian credibility theory in rating and ranking movies by a premier online movie database which is based on user's votes. Although the Bayesian credibility theory was developed originally as a method to calculate the risk premium by combining the individual risk experience with the class risk experience, it is generic enough to deal with a wide range of practical applications quite different from the classical application mentioned above. One such diverse application of the theory in an unlikely domain will be discussed in this paper.

Suggested Citation

  • Palash Ranjan Das & Gopal Govindasamy, 2019. "On the application of Bayesian credibility theory in movie rankings," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 36(2), pages 254-269.
    • Handle: RePEc:ids:ijores:v:36:y:2019:i:2:p:254-269
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