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Bose-Einstein Dynamics and Adaptive Contracting in the Motion Picture Industry

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Author Info
De Vany, Arthur
Walls, W David

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Abstract

Audiences discover what films they like and spread the word. Information feedback produces Bose-Einstein dynamics in the motion picture box office revenue distribution. Information cascades generate box office 'hits' and 'flops.' The revenue distribution evolves recursively over the 'run' as a mixture of the 'opening' and a stochastic competition among films. The motion picture run is decentralized, adaptive, and self-organizing: semistationary admission prices, local information, and contingency-rich contracts match the film rental price and the supply of theatrical engagements to demand. Copyright 1996 by Royal Economic Society.

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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 106 (1996)
Issue (Month): 439 (November)
Pages: 1493-1514
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Handle: RePEc:ecj:econjl:v:106:y:1996:i:439:p:1493-1514

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This page was last updated on 2009-11-12.

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