Ratings and Revenues: Evidence from Movie Ratings

9 Pages Posted: 19 Jan 2013

See all articles by Craig Palsson

Craig Palsson

affiliation not provided to SSRN

Joseph Price

Brigham Young University

Jared Shores

affiliation not provided to SSRN

Date Written: January 2013

Abstract

Ratings and report cards provide a relatively cheap way to influence consumer and producer decisions. We examine the specific case of movie ratings and find that receiving a mature rating (rated R) reduces a movie's box office revenues by 20%. We focus on the specific role of ratings by constructing a mature content index for each movie and compare movies with similar amounts of mature content, but that received different ratings. We also exploit the fact that the movie rating system places specific guidelines on the number of F‐words that are allowed at each content rating.

JEL Classification: D0, L82

Suggested Citation

Palsson, Craig and Price, Joseph and Shores, Jared, Ratings and Revenues: Evidence from Movie Ratings (January 2013). Contemporary Economic Policy, Vol. 31, Issue 1, pp. 13-21, 2013, Available at SSRN: https://ssrn.com/abstract=2203294 or http://dx.doi.org/10.1111/j.1465-7287.2012.00315.x

Craig Palsson (Contact Author)

affiliation not provided to SSRN

No Address Available

Joseph Price

Brigham Young University ( email )

130 FOB
Provo, UT 84604
United States

HOME PAGE: http://https://economics.byu.edu/directory/joseph-p-price

Jared Shores

affiliation not provided to SSRN

No Address Available

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