Experts’ Awards and Economic Success: Evidence from an Italian Literary Prize
Product quality is often unobservable ex-ante and consumers rely on experts’ judgments, sometimes coming under the form of ratings or awards. Do awards affect consumers’ choices or they are conferred to the most popular products? To disentangle this issue, we use data of the most important Italian Literary Prize, the “Strega Prize”, undertaking two different estimation strategies to evaluate the impact on book sales of being awarded the Prize. First, we adopt a Regression Discontinuity Design using as dependent variable a measure of book sales and as forcing variable (proxying for intrinsic book quality) the jury votes received by each nominated book in the competition. We find a very strong impact of the Strega Prize on sales. Second, using weekly data on appearances in bestseller lists, we estimate a difference-in-differences model, comparing sales performance of treated and control books before the award is conferred with their respective performance afterwards. The results confirm a huge influence of the Prize on book sales and show that most of the impact occurs in the weeks following the announcement.
|Date of creation:||27 Jun 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +39 081 - 675372
Fax: +39 081 - 675372
Web page: http://www.csef.it/
More information through EDIRC
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.:
- Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August.
- Eva Deuchert & Kossi Adjamah & Florian Pauly, 2005. "For Oscar Glory Or Oscar Money?," Journal of Cultural Economics, Springer, vol. 29(3), pages 159-176, August.
- Guido Imbens & Thomas Lemieux, 2007.
"Regression Discontinuity Designs: A Guide to Practice,"
NBER Technical Working Papers
0337, National Bureau of Economic Research, Inc.
- Imbens, Guido W. & Lemieux, Thomas, 2008. "Regression discontinuity designs: A guide to practice," Journal of Econometrics, Elsevier, vol. 142(2), pages 615-635, February.
- Guido Imbens & Thomas Lemieux, 2007. "Regression Discontinuity Designs: A Guide to Practice," NBER Working Papers 13039, National Bureau of Economic Research, Inc.
- Victor Ginsburgh, 2003.
"Awards, success and aesthetic quality in the arts,"
ULB Institutional Repository
2013/1679, ULB -- Universite Libre de Bruxelles.
- Lee, David S., 2008. "Randomized experiments from non-random selection in U.S. House elections," Journal of Econometrics, Elsevier, vol. 142(2), pages 675-697, February.
- GINSBURGH, Victor & van OURS, Jan, 2002.
"Expert opinion and compensation: evidence from a musical competition,"
CORE Discussion Papers
2002033, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Victor A. Ginsburgh & Jan C. van Ours, 2003. "Expert Opinion and Compensation: Evidence from a Musical Competition," American Economic Review, American Economic Association, vol. 93(1), pages 289-296, March.
- Victor Ginsburgh & Jan van Ours, 2003. "Expert opinion and compensation: evidence from a musical competition," ULB Institutional Repository 2013/1681, ULB -- Universite Libre de Bruxelles.
- David A. Reinstein & Christopher M. Snyder, 2005. "THE INFLUENCE OF EXPERT REVIEWS ON CONSUMER DEMAND FOR EXPERIENCE GOODS: A CASE STUDY OF MOVIE CRITICS -super-* ," Journal of Industrial Economics, Wiley Blackwell, vol. 53(1), pages 27-51, 03.
- Richard Friberg & Erik Gr�nqvist, 2012. "Do Expert Reviews Affect the Demand for Wine?," American Economic Journal: Applied Economics, American Economic Association, vol. 4(1), pages 193-211, January.
- Hadj Ali H. & Lecocq S. & Visser M., 2007.
"The impact of gurus: Parker grades and en primeur wine prices¤,"
Working Papers ERMES
0718, ERMES, University Paris 2.
- Ali, Héla Hadj & Lecocq, Sébastien & Visser, Michael, 2010. "The Impact of Gurus: Parker Grades and en primeur Wine Prices," Journal of Wine Economics, Cambridge University Press, vol. 5(01), pages 22-39, March.
- HélaHadj Ali & Sébastien Lecocq & Michael Visser, 2008. "The Impact of Gurus: Parker Grades and "En Primeur" Wine Prices," Economic Journal, Royal Economic Society, vol. 118(529), pages F158-F173, 06.
- Héla Hadj Ali & Sébastien Lecocq & Michael Visser, 2005. "The impact of gurus : Parker grades and en primeur wine prices," Research Unit Working Papers 0507, Laboratoire d'Economie Appliquee, INRA.
- Ali-Kein, Hela Hadj & Lecocq, Sebastien & Visser, Michael, 2007. "The Impact of Gurus: Parker Grades and EN PRIMEUR Wine Prices," Working Papers 37292, American Association of Wine Economists.
- Jonah Berger & Alan T. Sorensen & Scott J. Rasmussen, 2010. "Positive Effects of Negative Publicity: When Negative Reviews Increase Sales," Marketing Science, INFORMS, vol. 29(5), pages 815-827, 09-10.
- James Hilger & Greg Rafert & Sofia Villas-Boas, 2011.
"Expert Opinion and the Demand for Experience Goods: An Experimental Approach in the Retail Wine Market,"
The Review of Economics and Statistics,
MIT Press, vol. 93(4), pages 1289-1296, November.
- Hilger, James & Rafert, Greg & Villas-Boas, Sofia B, 2011. "Expert Opinion and the Demand for Experience Goods: An Experimental Approach in the Retail Wine Market," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt4nc7h417, Department of Agricultural & Resource Economics, UC Berkeley.
- Hilger, James & Rafert, Greg & Villas-Boas, Sofia B, 2009. "Expert Opinion and the Demand for Experience Goods : an experimental approach in the retail wine market," CUDARE Working Paper Series 1049, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
- David S. Lee & Thomas Lemieux, 2010.
"Regression Discontinuity Designs in Economics,"
Journal of Economic Literature,
American Economic Association, vol. 48(2), pages 281-355, June.
- David S. Lee & Thomas Lemieux, 2009. "Regression Discontinuity Designs In Economics," Working Papers 1118, Princeton University, Department of Economics, Industrial Relations Section..
- David S. Lee & Thomas Lemieux, 2009. "Regression Discontinuity Designs in Economics," NBER Working Papers 14723, National Bureau of Economic Research, Inc.
- Michela Ponzo & Vincenzo Scoppa, 2013.
"Experts’ Awards and Economic Success: Evidence from an Italian Literary Prize,"
CSEF Working Papers
335, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Ponzo, Michela & Scoppa, Vincenzo, 2015. "Experts' Awards and Economic Success: Evidence from an Italian Literary Prize," IZA Discussion Papers 8765, Institute for the Study of Labor (IZA).
- Michela Ponzo & Vincenzo Scoppa, 2013. "Experts’ Awards And Economic Success: Evidence From An Italian Literary Prize," Working Papers 201306, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
- Caroline Elliott & Rob Simmons, 2008. "Determinants of UK Box Office Success: The Impact of Quality Signals," Review of Industrial Organization, Springer, vol. 33(2), pages 93-111, September.
- Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-29, March-Apr.
When requesting a correction, please mention this item's handle: RePEc:sef:csefwp:335. 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: (Lia Ambrosio)
If references are entirely missing, you can add them using this form.