Article ID Journal Published Year Pages File Type
5076042 Information Economics and Policy 2007 25 Pages PDF
Abstract

We use data on a movie's stock price as it trades on the Hollywood Stock Exchange, a popular online market simulation, to study the impact of movie advertising. We find that advertising has a positive and statistically significant effect on expected revenues, but that the effect varies strongly across movies of different “quality”. The point estimate implies that the returns to advertising for the average movie are negative.

Related Topics
Social Sciences and Humanities Business, Management and Accounting Management of Technology and Innovation
Authors
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