Range: Why Generalists Triumph in a Specialized World

by David Epstein

Following their private-equity-investor experiment, the outside-view researchers turned to the movie business, a notoriously uncertain realm with high risk, high reward, and a huge store of data on actual outcomes. They wondered if forcing analogical thinking on moviegoers could lead to accurate forecasts of film success. They started by giving hundreds of movie fans basic film information—lead actor names, the promotional poster, and a synopsis—for an upcoming release. At the time, those included Wedding Crashers, Fantastic Four, Deuce Bigalow: European Gigolo, and others. The moviegoers were also given a list of forty older movies, and asked to score how well each one probably served as an analogy to each upcoming release. The researchers used those similarity scores (and a little basic film information, like whether it was a sequel) to predict the eventual revenue of the upcoming releases. They pitted those predictions against a mathematical model stuffed with information about seventeen hundred past movies and each upcoming film, including genre, budget, star actors, release year, and whether it was a holiday release. Even without all that detailed information, the revenue predictions that used moviegoer analogy scores were vastly better. The moviegoer-analogies forecast performed better on fifteen of nineteen upcoming releases. Using the moviegoers’ analogies gave revenue projections that were less than 4 percent off for War of the Worlds, Bewitched, and Red Eye, and ...