The decline and fall of the European film industry: sunk costs, market size and market structure, 1890-1927
AbstractIn the 1900s, the European film industry exported throughout the world, at times supplying half the US market. By 1920, however, European films had virtually disappeared from America, and had become marginal in Europe. Theory on sunk costs and market structure suggests that an escalation of sunk costs during a rapid US growth phase resulted in increased concentration; eight surviving companies dominated international film production and distribution forever after. European film companies, although overall profitable, could not take part, and after the war could not catch up. US, British and French time series data for 1890-1930 support the theory.
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Bibliographic InfoPaper provided by London School of Economics and Political Science, Department of Economic History in its series Economic History Working Papers with number 22366.
Length: 76 pages
Date of creation: Feb 2003
Date of revision:
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Find related papers by JEL classification:
- N0 - Economic History - - General
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
- R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
- J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
- B1 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
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Journal of Evolutionary Economics,
Springer, vol. 23(2), pages 331-355, April.
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