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Film economics

In: Teaching Cultural Economics

Author

Listed:
  • Tylor Orme
  • Darlene C. Chisholm

Abstract

This chapter provides a framework for introducing the economics of film to students new to the field. The authors organize the presentation around the pre-cinematic stages of development, production and distribution. The development stage is characterized by a high degree of uncertainty; production costs entail significant economies of scale; and distribution strategies are influenced by the experience-good nature of films. Suggested classroom exercises and essay questions draw on students’ experiences as movie-goers, and on widely available data on motion-picture financial success. Exercises include predicting a film’s success, based on key film characteristics, such as director, actor and sequel status; essay questions explore the significance of asymmetric information between studios and consumers on a film’s quality.

Suggested Citation

  • Tylor Orme & Darlene C. Chisholm, 2020. "Film economics," Chapters, in: Trine Bille & Anna Mignosa & Ruth Towse (ed.), Teaching Cultural Economics, chapter 34, pages 253-257, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:18414_34
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    Keywords

    Economics and Finance; Teaching Methods;

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