Managerial Objectives, the R‐Rating Puzzle, and the Production of Violent Films
We analyze project choice in the motion picture industry and find evidence consistent with revenue maximization and excessive hedging. We find that movies that are very violent or feature sex and violence do not provide excess returns, but they increase revenues, particularly in the international ma...
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| Veröffentlicht in: | The Journal of business (Chicago, Ill.) Ill.), 2004-04, Vol.77 (S2), p.S155-S192 |
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| Sprache: | eng |
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| container_end_page | S192 |
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| container_issue | S2 |
| container_start_page | S155 |
| container_title | The Journal of business (Chicago, Ill.) |
| container_volume | 77 |
| creator | Ravid, S. Abraham Basuroy, Suman |
| description | We analyze project choice in the motion picture industry and find evidence consistent with revenue maximization and excessive hedging. We find that movies that are very violent or feature sex and violence do not provide excess returns, but they increase revenues, particularly in the international market. Further, they tend to lose money less often and their returns are more predictable, even though there are never mega‐hits. This evidence is consistent with studies of other industries, and it partially explains the “R‐rating puzzle,” that is, the preponderance of R‐rated films although most studies find that G‐ and PG‐rated films perform better. |
| doi_str_mv | 10.1086/381638 |
| format | Article |
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| identifier | ISSN: 0021-9398 |
| ispartof | The Journal of business (Chicago, Ill.), 2004-04, Vol.77 (S2), p.S155-S192 |
| issn | 0021-9398 1537-5374 |
| language | eng |
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| source | Elektronische Zeitschriftenbibliothek - Frei zugängliche E-Journals; EBSCOhost Business Source Complete; JSTOR Archive Collection A-Z Listing |
| subjects | Advertising Bankruptcy Business studies Cinema Consumer behaviour Content ratings Domestic violence Entertainment Film criticism Film sequels Financial budgets Gold mines & mining Hedging Market Marketing Marketing research Mining industry Motion picture industry Movies Revenue Risk management Sexual violence Studies Variable budgets Violence |
| title | Managerial Objectives, the R‐Rating Puzzle, and the Production of Violent Films |
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