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Full-Text Articles in Entertainment, Arts, and Sports Law
Opportunism, Uncertainty, And Relational Contracting - Antitrust Rules In The Film Industry, Ryan M. Riegg
Ryan M. Riegg
For a long time, economists and investors have been baffled as to why Studios continue to produce movies with "blockbuster"-sized budgets (i.e. movies with budgets over $100 million) when producing those movies expose Studios to considerable economic risk.
By explaining the unique economics of the Film industry, and the effect of the Paramount (antitrust) rules on Film distribution contracts, this article provides an explanation to the puzzle of the blockbuster that is confirmed by recent trends in Film industry. Additionally, by using the Film industry as a model, this article also demonstrates how relational contracting can be understood ...