Goodwill and System Dynamics Modeling for Film Investment Decision by Interactive Efforts

Table 1

Variables and definitions used in the model.

	Time , ≥
	The accumulated film’s goodwill at time t.
	The film’s advertising effort at time t.
	The film-making effort at time t.
	The star power at time t.
	The number of moviegoers along time t.
	The film’s advertising cost.
	The film-making cost.
	The star remuneration.
	Constants
	The film ticket price.
	The objective profit functions of the film.
>	Positive coefficient measuring the impact of film’s advertising.
>	Positive coefficient measuring the impact of film-making.
>	Positive coefficient measuring the impact of star power.
>	The decay rate of the film goodwill.
>	Positive constant representing the effect of star power on the number of moviegoers.
>	Positive constant representing the effect of film’s advertising on the number of moviegoers.
>	Positive constant representing the effect of film’s goodwill on the number of moviegoers.
>	The discount rate.