Strategic Decision-Making in Hollywood Release Gaps
Hollywood blockbusters are usually released in the U.S. before other foreign markets. The release gaps have declined significantly over time and varied greatly across countries. While movie piracy has been suggested as an important determinant for the release gap decision of distributors, theory and evidence suggest there are other important determinants. In this paper, we use a discrete choice release gap decision game model to disentangle the impacts of the i) release gap effect, which includes factors that provide incentives for a distributor to shorten the release gap; ii) word-of-mouth effect, which provides incentives for a distributor to lengthen the release gap; and iii) strategic effect, which accounts for the incentives blockbusters have to avoid each other. We obtain box office and release gap data from the private industry source Boxofficemojo.com. Our results suggest all three factors have an economically significant impact on distributors' release gap decision.
|Date of creation:||Dec 2013|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
- Mark J. Melitz, 2002.
"The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity,"
NBER Working Papers
8881, National Bureau of Economic Research, Inc.
- Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
- Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers 3381, C.E.P.R. Discussion Papers.
- Timothy J. Kehoe & Kim J. Ruhl, 2013.
"How Important Is the New Goods Margin in International Trade?,"
Journal of Political Economy,
University of Chicago Press, vol. 121(2), pages 358-392.
- Timothy J. Kehoe & Kim J. Ruhl, 2009. "How important is the new goods margin in international trade?," Staff Report 324, Federal Reserve Bank of Minneapolis.
- Timothy J. Kehoe & Kim J. Ruhl, 2006. "How Important is the New Goods Margin in International Trade?," 2006 Meeting Papers 733, Society for Economic Dynamics.
- Liran Einav, 2010. "Not All Rivals Look Alike: Estimating An Equilibrium Model Of The Release Date Timing Game," Economic Inquiry, Western Economic Association International, vol. 48(2), pages 369-390, 04.
- Brett Danaher & Michael D. Smith & Rahul Telang, 2014.
"Piracy and Copyright Enforcement Mechanisms,"
Innovation Policy and the Economy,
University of Chicago Press, vol. 14(1), pages 25-61.
- Jehoshua Eliashberg & Anita Elberse & Mark A.A.M. Leenders, 2006. "The Motion Picture Industry: Critical Issues in Practice, Current Research, and New Research Directions," Marketing Science, INFORMS, vol. 25(6), pages 638-661, 11-12.
- repec:clg:wpaper:2014-56 is not listed on IDEAS
- Anita Elberse & Jehoshua Eliashberg, 2003. "Demand and Supply Dynamics for Sequentially Released Products in International Markets: The Case of Motion Pictures," Marketing Science, INFORMS, vol. 22(3), pages 329-354.
- David Hummels & Peter J. Klenow, 2005. "The Variety and Quality of a Nation's Exports," American Economic Review, American Economic Association, vol. 95(3), pages 704-723, June.
- Jehoshua Eliashberg & Sam K. Hui & Z. John Zhang, 2007. "From Story Line to Box Office: A New Approach for Green-Lighting Movie Scripts," Management Science, INFORMS, vol. 53(6), pages 881-893, June.
- Arthur Vany & W. Walls, 2007.
"Estimating the Effects of Movie Piracy on Box-office Revenue,"
Review of Industrial Organization,
Springer;The Industrial Organization Society, vol. 30(4), pages 291-301, June.
- McCalman, Phillip, 2005. "International diffusion and intellectual property rights: An empirical analysis," Journal of International Economics, Elsevier, vol. 67(2), pages 353-372, December.
- Liran Einav, 2007. "Seasonality in the U.S. motion picture industry," RAND Journal of Economics, RAND Corporation, vol. 38(1), pages 127-145, 03.
- Charles C. Moul, 2007. "Measuring Word of Mouth's Impact on Theatrical Movie Admissions," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(4), pages 859-892, December.
- Akbar Marvasti & E. Ray Canterbery, 2005. "Cultural and Other Barriers to Motion Pictures Trade," Economic Inquiry, Western Economic Association International, vol. 43(1), pages 39-54, January.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:52439. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.