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David Molin
Papers
- Movie Stars and Consumer Learning: Evidence from DVD Sales
(Job Market Paper)
Abstract: In the motion picture industry most actors and actresses work for low fees, but a small group can command compensations of millions of dollars per movie. In this paper I test the consumer learning hypothesis: consumers choose films using information from other films with the same star actor or actress. Using DVD sales data for a sample of 206 films, I show that the release of a new movie increases sales of old movies with the same star. However, this result is driven by a subset of sequels and Oscar nominated films. I conclude that some other effect must drive the presence of superstars in the motion picture industry.
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