motion pictures, economics of

W. David Walls
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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Abstract

Film-goers discover the films they like by consuming them, and through the exchange of information the demand for motion pictures evolves dynamically. The supply of screens adjusts in response to demand through flexible state-contingent exhibition contracts. This article presents an overview of the economics of motion pictures that focuses on how the demand process affects the distribution of outcomes, how the distribution of outcomes can be quantified with the use of statistical models, and how the industry's organization and business practices can be understood in light of the behavioural and statistical models.
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How to cite this article

David Walls, W. "motion pictures, economics of." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 02 September 2010 <http://www.dictionaryofeconomics.com/article?id=pde2008_E000223> doi:10.1057/9780230226203.1142

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Table of Contents

  • Abstract
  • Keywords
  • Article
    • Movie-goer choices and outcome uncertainty
    • Quantifying the distribution of movie outcomes
      • The stable Paretian model
      • Conditional stable distribution
      • Stretched exponentials
    • Understanding the movie business
      • The opening
      • Decentralization
      • Admission pricing
      • Contracting
      • Film rentals
      • Star power
      • Success breeds success
    • Conclusion
  • See Also
  • Bibliography
  • How to cite this article
 
 

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