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| Author: | Ravid, A. |
| Title: | Information, blockbusters, and stars: a study of the film industry |
| Journal: | Journal of Business
1999 : OCT, VOL. 72:4, p. 463-492 |
| Index terms: | INFORMATION FILM INDUSTRY HISTORY |
| Language: | eng |
| Abstract: | This article presents two alternative explanations for the role of stars in motion pictures. Either informed insiders signal project quality by hiring an expensive star, or stars capture their expected economic rent. These approaches are tested on a sample of movies produced in the 1990s. Means comparisons suggest that star-studded films bring in higher revenues. However, regressions show that any big budget investment increases revenues. |
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