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In this paper, cost, revenue, and externalities of reality shows are the mainly considered topics. Based on Cobb Douglas Production Function, the production cost in a reality show can be categorized into two types: fixed cost and variable cost, thus analyzing the revenue and the externalities of the shows. Utilizing the data from a random sample of 10 types of reality shows throughout the nation, 310 volumes in total, as well as Ordinary Least Square technique (OLS), multiple linear regression to analyze, a conclusion can be reached that for draft shows, one available method to increase the program revenue and its positive externality is to aggregate the variable costs such as appearance fee. On the other hand, for the programs of other types, invest more on the fixed cost can attain the same impact.

An Analysis of Cost Allocation and Social Benefits in Reality Shows