Competitive Dynamics of Genre Choices in the Film Production

This paper considers an industry dynamic discrete-choice model (the DP model thereafter) to characterize the strategic behaviors of major film makers in the production choices of film genres in the U.S. motion picture industry. Given the fact that film production decisions are farsighted, the DP model is better in the sense that it not only models the players’ decisions based on the current state status, but also based on the players’ expectations of the decision probabilities from their opponents integrated over all the possible future states. A further empirical work is needed to estimate the model parameters and test the model’s goodness of fit.