When should star power and eWOM be responsible for the box office performance? - An empirical study based on signaling theory

Information asymmetry universally exists in the market transactions. In the movie industry, consumers usually have limited access to quality information before they actually watch the movie, which increases the difficulty of purchase decision. Quality signaling is regarded as an effective solution for information asymmetry. Drawing upon the signaling theory, this study identifies the two types of signals, namely internal signals (i.e.,...