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The Ratings Game: Asymmetry in Classification

Author

Listed:
  • David M. Waguespack

    (Robert H. Smith School of Business, University of Maryland, College Park, Maryland 20742)

  • Olav Sorenson

    (Yale School of Management, New Haven, Connecticut 06520)

Abstract

Categorization processes are generally treated as consistent mappings of the underlying characteristics that they group. Yet, in many cases, the identities of actors influence these processes. When identity matters, high-status actors often obtain more favorable classifications. We examine these processes in the context of the Motion Picture Association of America's parental guidance classifications of movies (G, PG, R, NC-17). We find that, conditional on a given level of content, films distributed by the Association's members and those that involve more central producers and directors receive more lenient classifications than those carried by independent distributors and involving more peripheral personnel. Conversely, and again conditional on content, films involving directors with a history of producing R-rated features receive more restrictive ratings. We discuss the mechanisms that might account for these effects. Regardless of the mechanism, however, because ratings influence revenue and consequently profitability, the movie certification system in the United States places independent distributors and peripheral individuals at a disadvantage, relative to their larger and more central rivals.

Suggested Citation

  • David M. Waguespack & Olav Sorenson, 2011. "The Ratings Game: Asymmetry in Classification," Organization Science, INFORMS, vol. 22(3), pages 541-553, June.
  • Handle: RePEc:inm:ororsc:v:22:y:2011:i:3:p:541-553
    DOI: 10.1287/orsc.1100.0533
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    References listed on IDEAS

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    4. Pierre Azoulay & Toby Stuart & Yanbo Wang, 2012. "Matthew: Effect or Fable?," NBER Working Papers 18625, National Bureau of Economic Research, Inc.
    5. Daniel M. Olson & David M. Waguespack, 2020. "Strategic behavior by market intermediaries," Strategic Management Journal, Wiley Blackwell, vol. 41(13), pages 2474-2492, December.
    6. Eric Yanfei Zhao & P. Devereaux Jennings & Masakazu Ishihara & Michael Lounsbury, 2018. "Optimal Distinctiveness in the Console Video Game Industry: An Exemplar-Based Model of Proto-Category Evolution," Organization Science, INFORMS, vol. 29(4), pages 588-611, August.
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    9. Jordi McKenzie, 2023. "The economics of movies (revisited): A survey of recent literature," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 480-525, April.
    10. Giacomo Negro & Ming D. Leung, 2013. "“Actual” and Perceptual Effects of Category Spanning," Organization Science, INFORMS, vol. 24(3), pages 684-696, June.
    11. Isabel Fernandez-Mateo & Marko Coh, 2015. "Coming with Baggage: Past Rejections and the Evolution of Market Relationships," Organization Science, INFORMS, vol. 26(5), pages 1381-1399, October.
    12. Wei Tian & Xiangyun Zhou & Yixiang Tian & Wei Meng, 2020. "Short-term competition and long-term convergence between domestic and global rating agencies: Evidence from China," PLOS ONE, Public Library of Science, vol. 15(5), pages 1-15, May.
    13. J.-P. Vergne & Tyler Wry, 2014. "Categorizing Categorization Research: Review, Integration, and Future Directions," Journal of Management Studies, Wiley Blackwell, vol. 51(1), pages 56-94, January.
    14. Dror Etzion, 2014. "Diffusion as Classification," Organization Science, INFORMS, vol. 25(2), pages 420-437, April.
    15. Wanda J. Orlikowski & Susan V. Scott, 2014. "What Happens When Evaluation Goes Online? Exploring Apparatuses of Valuation in the Travel Sector," Organization Science, INFORMS, vol. 25(3), pages 868-891, June.
    16. Jerry W. Kim & Brayden G King, 2014. "Seeing Stars: Matthew Effects and Status Bias in Major League Baseball Umpiring," Management Science, INFORMS, vol. 60(11), pages 2619-2644, November.
    17. Skokic, Vlatka & Coh, Marko, 2017. "How do executive search firms increase interest in career opportunities? The role of past interactions," European Management Journal, Elsevier, vol. 35(4), pages 505-513.
    18. Orlikowski, Wanda J. & Scott, Susan V., 2014. "What happens when evaluation goes online? Exploring apparatuses of valuation in the travel sector," LSE Research Online Documents on Economics 57602, London School of Economics and Political Science, LSE Library.
    19. Anne Bowers, 2015. "Relative Comparison and Category Membership: The Case of Equity Analysts," Organization Science, INFORMS, vol. 26(2), pages 571-583, April.
    20. Ben W. Lewis & W. Chad Carlos, 2023. "The risk of being ranked: Investor response to marginal inclusion on the 100 Best Corporate Citizens list," Strategic Management Journal, Wiley Blackwell, vol. 44(1), pages 117-140, January.
    21. Balazs Szatmari & Dirk Deichmann & Jan van den Ende & Brayden G. King, 2021. "Great Successes and Great Failures: The Impact of Project Leader Status on Project Performance and Performance Extremeness," Journal of Management Studies, Wiley Blackwell, vol. 58(5), pages 1267-1293, July.
    22. Greta Hsu & Peter W. Roberts & Anand Swaminathan, 2012. "Evaluative Schemas and the Mediating Role of Critics," Organization Science, INFORMS, vol. 23(1), pages 83-97, February.

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