Analysis of the determinants of film quality considering a risk-averse producer and consumer learning from online reviews
研究风险规避制片人在影院和数字平台双渠道中如何根据在线评论和消费者学习调整投资与定价，发现风险规避者倾向低质量低价电影，而评论精度提高会削弱风险规避对质量投资的影响。
This study examines a dual distribution channel through theatres and digital platforms to understand how a producer’s investment strategy and pricing in these channels are influenced by risk aversion and the ability of Bayesian consumers to learn from online reviews. We develop a Stackelberg game model, where a risk-averse producer acts as the leader, investing in the film, which is then released sequentially in theatres and on digital platforms. Our findings show that online reviews are crucial due to the uncertainty of achieving the target movie quality. A risk-averse producer tends to invest in lower-quality movies with lower prices, while a risk-neutral producer invests in higher-quality films with higher ticket prices. Critic reviews significantly impact firms’ decisions more than audience reviews. Interestingly, increasing the precision of online reviews lessens the effect of risk aversion on quality investment. These insights provide valuable contributions to film industry stakeholders, highlighting how online reviews and risk aversion shape investment strategies in the industry.