Estimating Structural Models of Equilibrium and Cognitive Hierarchy Thinking in the Field: The Case of Withheld Movie Critic Reviews

• Published in: Management science Vol. 59; no. 3; pp. 733 - 747
• Main Authors: Brown, Alexander L., Camerer, Colin F., Lovallo, Dan
• Format: Journal Article
• Language: English
• Published: Linthicum INFORMS 01.03.2013; Institute for Operations Research and the Management Sciences
• Subjects: 2000-2009; bounded rationality; Cognitive models; competitive strategy; Decision analysis; Econometrics; Economic equilibrium models; Economic theory; economics; Equilibrium; Experimental methods; Experimentelle Ökonomik; Film criticism; Film industry; Game theory; Games; Kognition; Kritik; Management science; Market strategy; marketing; Microeconomics; Modeling; Motion picture industry; Motion pictures; Movies; Multilevel models; Parametric models; psychology; Revenue; Spieltheorie; Strategic planning (Business); Structural economics; Studies; USA

Film studios occasionally withhold movies from critics before their release. Because the unreviewed movies tend to be below average in quality, this practice provides a useful setting in which to test models of limited strategic thinking: Do moviegoers seem to realize that no review is a sign of low...