Is Rotten Tomatoes killing the movie industry? A regression discontinuity approach

Marislei Nishijima, Mauro Rodrigues and Thaís Luiza Donega Souza

Applied Economics Letters, 2022, vol. 29, issue 13, 1187-1192

Abstract: We study the effect of expert reviews on consumer choice, focusing on the movie industry. Specifically, we estimate the impact of a popular movie review aggregator – Rotten Tomatoes (RT) – on box office revenue, using a sample of 1,239 movies widely-released in the U.S. between 1999 and 2019. RT’s rating system allows us to use regression discontinuity, thus avoiding problems associated with omitted unobservable characteristics of movies (such as quality and commercial appeal). We do not find evidence that RT ratings affect box office performance.

Date: 2022
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Working Paper: Is Rotten Tomatoes killing the movie industry? A regression discontinuity approach (2021)
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DOI: 10.1080/13504851.2021.1918324

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