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Movie Stars and the Volatility of Movie Revenues

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  • Amit Joshi

Abstract

Research has found conflicting results regarding the profitability of movies that have big-name stars. Why then, are stars selected to act in movies? Using the concepts of risk, volatility, and brand loyalty, this research proposes that although stars may not guarantee profits, their presence results in lower weekly revenue volatility. Using a database comprising 41 stars and their presence in 467 movies from over a 26-year period, this study finds broad support for this hypothesis.

Suggested Citation

  • Amit Joshi, 2015. "Movie Stars and the Volatility of Movie Revenues," Journal of Media Economics, Taylor & Francis Journals, vol. 28(4), pages 246-267, October.
  • Handle: RePEc:taf:jmedec:v:28:y:2015:i:4:p:246-267
    DOI: 10.1080/08997764.2015.1094079
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    Cited by:

    1. Jordi McKenzie, 2023. "The economics of movies (revisited): A survey of recent literature," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 480-525, April.
    2. François A. Carrillat & Renaud Legoux & Allègre L. Hadida, 2018. "Debates and assumptions about motion picture performance: a meta-analysis," Journal of the Academy of Marketing Science, Springer, vol. 46(2), pages 273-299, March.

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