It simulates exhibitor decisions using a discrete time survival model with random effects.
Do movie reviews affect how long a film stays on screen?
The results show that a film with exceptional ratings has a larger chance of staying in a cinema for longer than one with poor, fair, or good reviews even after controlling for the previous week's box office.
The authors examine how reviews affect box office performance and how money and stars might be able to lessen the effects.
A movie is a typical example of an experience good; the consumer cannot accurately evaluate the good's utility until after consumption.
Critical reviews offer this kind of information, so it is reasonable to assume that they will influence moviegoers' choices.
