Strategic microscheduling of movies


Dürr, Niklas S. ; Engelstätter, Benjamin ; Ward, Michael R.


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URL: https://ub-madoc.bib.uni-mannheim.de/43562
URN: urn:nbn:de:bsz:180-madoc-435621
Document Type: Working paper
Year of publication: 2017
The title of a journal, publication series: ZEW Discussion Papers
Volume: 17-033
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: D22 , L21 , L82 , M31,
Keywords (English): Non-price competition , niche competition , strategic timing of entry , movie market
Abstract: We investigate how competition in product niches affects the ultimate timing of product release for experience goods using data on motion pictures in the United States. We identify product niches that movies occupy along three different product dimensions: common actor, common director, and common genre. We estimate the drivers for a motion picture´s weekly sales based on the variation in the level of competition in these particular niches over time. We show that release date of motion pictures are more likely rescheduled when there is more competition during the initially proposed release week. Next, we find that competition from movies by the same director or within the same movie genre decrease motion picture´s box office revenue most. Finally, we compare a movie’s actual sales to estimated sales at the originally planned release date. Rescheduled movies generate about $6 million more revenue than they would have at their originally proposed release date.

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Dürr, Niklas S. ; Engelstätter, Benjamin ; Ward, Michael R. (2017) Strategic microscheduling of movies. Open Access ZEW Discussion Papers Mannheim 17-033 [Working paper]
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