At the Movies: Avoiding Head-to-Head Competition on the Big Screen: The Economics of Movie Distribution
This paper provides theoretical explanations for devices that movie distributors use to avoid head-to-head competition. We use a simple static model to show how revenuse sharing exhibition contracts providex multiplex owners with incentives to take cross effects on demand into account. Then we simulate a dynamic version of the model to explian the practice of staggering the release dates of hit movies and consider how vertical integration affects release patterns and the allocation of movies to screens. The dynamic model is of independent interest because it allows for dynamic strategic interaction in a common agency framework.
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- B. Douglas Bernheim & Michael D. Whinston, 1998.
Journal of Political Economy,
University of Chicago Press, vol. 106(1), pages 64-103, February.
- B. Douglas Bernheim & Michael D. Whinston, "undated". "Exclusive Dealing," Working Papers 96008, Stanford University, Department of Economics.
- B. Douglas Bernheim & Michael D. Whinston, 1996. "Exclusive Dealing," NBER Working Papers 5666, National Bureau of Economic Research, Inc.
- Bernheim, B.D., 1992. "Exclusive Dealing," Harvard Institute of Economic Research Working Papers 1622, Harvard - Institute of Economic Research.
- Aghion, Philippe & Bolton, Patrick, 1987. "Contracts as a Barrier to Entry," American Economic Review, American Economic Association, vol. 77(3), pages 388-401, June.
- De Vany, Arthur & Walls, W David, 1996. "Bose-Einstein Dynamics and Adaptive Contracting in the Motion Picture Industry," Economic Journal, Royal Economic Society, vol. 106(439), pages 1493-1514, November.
- De Vany, A. & Walls, W.D., 1999. ""Uncertainty in the Movies: Does Star Power Reduce the Terror of the Box Office?"," Papers 98-99-10, California Irvine - School of Social Sciences.
- B. Douglas Bernheim & Michael D. Whinston, 1985. "Common Marketing Agency as a Device for Facilitating Collusion," RAND Journal of Economics, The RAND Corporation, vol. 16(2), pages 269-281, Summer.
- Thomas E. Borcherding & Darren Filson, "undated". "Conflicts of Interest in the Hollywood Film Industry: Coming to America - Tales from the Casting Couch, Gross and Net, in a Risky Business," Claremont Colleges Working Papers 2000-07, Claremont Colleges.
- Bernheim, B Douglas & Whinston, Michael D, 1986. "Common Agency," Econometrica, Econometric Society, vol. 54(4), pages 923-942, July. Full references (including those not matched with items on IDEAS)
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