Date of Award
Honors Thesis (Open Access)
Colby College. Economics Dept.
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. This regression result, however, shows that the attributes of a movie explain the most variance in box office revenue. By interaction term of major distributors and rivals’ characteristics variables, I find that major distributors are more vulnerable to the competition effects.
Competition Effects, Film Industry, Seasonality, Major Distributors, Market Share
Recommended CitationDong, Yuanyuan, "Impacts of a Movie's Rivals' Releasing Decisions on its Domestic Box Office Revenue" (2020). Honors Theses. Paper 1006.