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Economics

Honors Theses

Theses/Dissertations

2020

Competition Effects

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Impacts Of A Movie's Rivals' Releasing Decisions On Its Domestic Box Office Revenue, Yuanyuan Dong Jan 2020

Impacts Of A Movie's Rivals' Releasing Decisions On Its Domestic Box Office Revenue, Yuanyuan Dong

Honors Theses

This paper uses the OLS regression model to investigate and quantify the competition effects in the film industry, aiming to help film distributors in the making releasing decision. To do so, I define the movies that release within the same week as rivals and use the rivals’ characteristics variables to capture the competition effects. The regression results show that a movie’s rivals’ total production budgets and the number of opening weekend’s theater have significantly negative impacts on this movie’s box office revenue. After adding control variables and indicator variables for seasonality, the competition effects become less obvious with less precision. …