EconPapers    
Economics at your fingertips  
 

Optimal Inter-Release Time between Sequentially Released Products

Jackie Y. Luan and K. Sudhir ()
Additional contact information
Jackie Y. Luan: Lavector
K. Sudhir: Cowles Foundation, Yale University, https://faculty.som.yale.edu/ksudhir/

No 2325, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: Marketers routinely use timing as a segmentation device through sequential product releases.While there has been much theoretical research on the optimal introduction strategy of sequential releases, there is little empirical research on this problem. This paper develops an econometric model to empirically solve the inter-release timing problem: it involves (1) developing and estimating a structural model of consumers’ choice for sequentially released products and (2) using the estimates of the structural model to solve for the optimal inter-release time. The empirical application focuses on the movie industry, where we specifically address the issue of the inter-release time between a theatrical movie and its DVD version. We find that consumers are indeed forward looking; a shrinking movie-DVD release window does negatively impact box office revenues, but there is a tradeoff in that there is greater residual buzz from the movie marketing that supports the sales of DVD due to the shorter time window. This leads to an inverted U shaped relationship between movie-DVD release window and revenues, and the theater-DVD window that maximizes industry revenue for the average movie during the data period is 2.5 months.

Keywords: Movies; sequential releases; entertainment industry; structural model; segmentation. (search for similar items in EconPapers)
Pages: 51 pages
Date: 2022-02
New Economics Papers: this item is included in nep-ban, nep-com and nep-cul
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://cowles.yale.edu/sites/default/files/files/pub/d23/d2325.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cwl:cwldpp:2325

Ordering information: This working paper can be ordered from
Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA
The price is None.

Access Statistics for this paper

More papers in Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University Yale University, Box 208281, New Haven, CT 06520-8281 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Brittany Ladd ().

 
Page updated 2024-02-25
Handle: RePEc:cwl:cwldpp:2325