Seasonality and Competition in Time: An Empirical Analysis of Release Date Decisions in the U.S. Motion Picture Industry
Strong seasonality in demand, a short product life cycle, and the absence of any price competition make the release date of first-run movies one of the main strategic decisions taken by movies? distributors. The absence of good observable measures of product quality creates a difficulty in separately identifying the two layers of seasonal pattern. This paper identifies these layers by estimating weekly demand for movies, using movie fixed effects, a long panel of movies' weekly revenues, and reasonable restrictions on their decay pattern.