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The Influence of Expert Reviews on Consumer Demand For Experience Goods: A Case Study of Movie Critics

Reinstein, David and Snyder, Christopher M (2005) 'The Influence of Expert Reviews on Consumer Demand For Experience Goods: A Case Study of Movie Critics.' Journal of Industrial Economics, 53 (1). pp. 27-51. ISSN 0022-1821

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Abstract

An inherent problem in measuring the influence of expert reviews on the demand for experience goods is that a correlation between good reviews and high demand may be spurious, induced by an underlying correlation with unobservable quality signals. Using the timing of the reviews by two popular movie critics, Siskel and Ebert, relative to opening weekend box office revenue, we apply a difference-in-differences approach to circumvent the problem of spurious correlation. After purging the spurious correlation, the measured influence effect is smaller though still detectable. Positive reviews have a particularly large influence on the demand for dramas and narrowly-released movies.

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Jim Jamieson
Date Deposited: 16 Jul 2012 21:22
Last Modified: 16 Jul 2012 21:22
URI: http://repository.essex.ac.uk/id/eprint/2928

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