Predicting Innovation Success in the Motion Picture Industry: The Influence of Multiple Quality Signals

In settings characterized by frequent product entries and rapid market exit, predicting innovation success is a difficult task. The challenge in such short life‐cycle markets is exacerbated when the offering is an experience good (i.e., product quality is not known prior to consumption). This article investigates a variety of information disequilibrium‐reducing cues that can signal a new product's quality, and posit that those cues affect...