The Role of Reputation in Sequel Production
This paper develops a simple model of sequel production for experience goods, showing how reputation shapes a producer’s incentives. Producers differ in productivity, which determines how much effort they invest. A sequel is made only if the previous installment exceeds a quality threshold, capturin...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2025-05-01
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| Series: | Games |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2073-4336/16/3/23 |
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| Summary: | This paper develops a simple model of sequel production for experience goods, showing how reputation shapes a producer’s incentives. Producers differ in productivity, which determines how much effort they invest. A sequel is made only if the previous installment exceeds a quality threshold, capturing the idea that consumers base future consumption on past success. Although high-productivity producers create higher-quality originals and sequels, the conditioning on successful originals still makes sequels, on average, worse than their predecessors. This aligns with evidence of sequel underperformance in media markets. |
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| ISSN: | 2073-4336 |