Hollywood Economics: How Extreme Uncertainty Shapes the Film Industry

Arthur De Vany

Psychology Press, 2004 - Business & Economics - 308 pages

Just how risky is the movie industry? Is screenwriter William Goldman's claim that "nobody knows anything" really true? Can a star and a big opening change a movie's risks and return? Do studio executives really earn their huge paychecks?

These and many other questions are answered in Hollywood Economics. The book uses powerful analytical models to uncover the wild uncertainty that shapes the industry. The centerpiece of the analysis is the unpredictable and often chaotic dynamic behaviour of motion picture audiences.

This unique and important book will be of interest to students and researchers involved in the economics of movies, industrial economics and business studies. The book will also be a real eye-opener for film writers, movie executives, finance and risk management professionals as well as more general movie fans.

Contents

• Prologue: 1
• Tables: 5
• PART I: 7
• BoseEinstein dynamics and adaptive contracting: 28
• Quality evaluations and the breakdown of statistical: 48
• PART II: 65
• can star power reduce: 71
• risk: 99
• analysis: 122
• PART III: 139
• Was the antitrust action that broke up the movie studios: 176
• concentration measures: 190
• PART IV: 207
• Contracting with stars when nobody knows anything: 231
• How extreme uncertainty shapes the movie business: 255
• nobody knows anything?: 267
• 255: 299

About the author

Arthur De Vany is Professor Emeritus of Economics at the University of California, Irvine and President of Arts Analytica, a consulting company specializing in energy, motion pictures and risk-return analysis.

Bibliographic information

• Title: Hollywood Economics: How Extreme Uncertainty Shapes the Film Industry; Contemporary political economy series; Routledge Studies in Contemporary Political Economy Series
• Author: Arthur De Vany
• Edition: illustrated, reprint
• Publisher: Psychology Press, 2004
• ISBN: 0415312612, 9780415312615
• Length: 308 pages
• Subjects: Business & Economics / Economics / General; Business & Economics / General; Business & Economics / Industrial Management; Business & Economics / Industries / Entertainment; History / General; Social Science / Media Studies; Technology & Engineering / Telecommunications