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Vertical Integration during the Hollywood Studio Era.
- Source :
- Journal of Law & Economics; Aug2010, Vol. 53 Issue 3, p519-543, 25p
- Publication Year :
- 2010
-
Abstract
- The Hollywood studio system-production, distribution, and exhibition vertically integrated-flourished until 1948, when the famous Paramount decision forced the divestiture of theater chains and the abandonment of a number of vertical practices. Although many of the banned practices have since been posited to have increased efficiency, evidence of an efficiency-enhancing rationale for theater ownership has not been presented. This paper explores the hypothesis that theater chain ownership promoted efficient ex post adjustment in the length of film runs-specifically, abbreviation of unexpectedly unpopular films. Extracontractual run-length adjustments are desirable because demand for a film is not revealed until the film is actually exhibited. The paper employs a unique data set of cinema booking sheets. It finds that run lengths for releases by vertically integrated film producers were significantly-economically and statistically-more likely to be altered ex post. The paper documents and discusses additional practices intended to promote flexibility. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 00222186
- Volume :
- 53
- Issue :
- 3
- Database :
- Complementary Index
- Journal :
- Journal of Law & Economics
- Publication Type :
- Academic Journal
- Accession number :
- 60436734
- Full Text :
- https://doi.org/10.1086/605567