Is Rotten Tomatoes killing the movie industry? A regression discontinuity approach

Author(s)

Nishijima, Marislei ; Rodrigues Jr, Mauro ; Donega Souza, Thais Luiza

• Document type: Journal article
• Source: APPLIED ECONOMICS LETTERS; v. 29, n. 13, p. 6-pg., 2021-04-21.

Abstract

We study the effect of expert reviews on consumer choice, focusing on the movie industry. Specifically, we estimate the impact of a popular movie review aggregator - Rotten Tomatoes (RT) - on box office revenue, using a sample of 1,239 movies widely-released in the U.S. between 1999 and 2019. RT's rating system allows us to use regression discontinuity, thus avoiding problems associated with omitted unobservable characteristics of movies (such as quality and commercial appeal). We do not find evidence that RT ratings affect box office performance. (AU)

• FAPESP's process: 18/02272-1 - Effect of critical reviews of experts and consumers on information goods consumption - the United States cinema
• Grantee: Marislei Nishijima
• Support Opportunities: Regular Research Grants