Why do Movie Studios Produce R-rated Films?

Brian Goff, Dennis Wilson, David Zimmer


R-rated films are correlated with lower box office revenues. Using sex and nudity content as an instrument to predict R-ratings, we show that R-ratings themselves are not the cause of lower revenues. Instead, R-rated films contain traits that lower revenues and the ratings act as a signal of those traits. Why do film producers include those traits and seek R-ratings? We show that R-ratings alter the shape of the distribution of critical reviews, shifting the distribution to the right. Moreover, even after controlling for other influences, R-ratings improve critical reviews, suggesting that producers not only seek box office revenues, but also critical acclaim.

Full Text:


DOI: https://doi.org/10.11114/aef.v2i1.610


  • There are currently no refbacks.

Paper Submission E-mail: aef@redfame.com

Applied Economics and Finance    ISSN 2332-7294 (Print)   ISSN 2332-7308 (Online)

Copyright © Redfame Publishing Inc.

To make sure that you can receive messages from us, please add the 'redfame.com' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders. If you have any questions, please contact: aef@redfame.com