The Good, the Bad and the Picky: Reference Dependence and the Reversal of Product Ratings

Bondi, Tommaso; Rossi, Michelangelo; Stevens, Richard

doi:10.2139/ssrn.4453681

Search citation statements

Order By: Relevance

Paper Sections

Select...

Iv(i) Data1

Citation Types

Supporting

Mentioning

Contrasting

Year Published

2023

Publication Types

Select...

Article1

Relationship

Self Cite0

Independent1

Authors

Journals

Cited by 1 publication

(1 citation statement)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…9 The literature also uses reviews' volume and valence as alternative proxies for quality. In line with our theoretical prediction, however, such measures constitute a biased measure of the movies' real quality since more popular movies are typically viewed and evaluated by consumers whose average preference lies farther apart from the movies' "location" (see e.g., Bondi [2019] and Bondi and Stevens [2019]). As such, keeping quality fixed, the average valence of a more popular movie is mechanically biased downwards.…”

Section: Iv(i) Datasupporting

confidence: 59%

Competition and Strategic Budget Choices in the Motion Picture Industry*

Delre,

Sekeris

2023

The J Industrial Economics

View full text Add to dashboard Cite

In this article, we study the effect of differentiation on firms' optimal investments in advertising and product quality in the specific context of the motion picture industry. To guide our empirical analysis, we develop a stylized model uncovering that competition in advertising is the highest for intermediate levels of horizontal differentiation, while product quality increases monotonically in differentiation. We corroborate our theoretical predictions with a large dataset on the movie industry confirming both the inverted U‐shaped relationship between advertising and differentiation, and the monotonically increasing relationship between product quality and differentiation.

show abstract

Section: Iv(i) Datasupporting

confidence: 59%