Contracting in the Movies When "Nobody Knows Anything": The Careers, Pay and Contracts of Motion Picture Directors

Topics:
Motion Pictures
Tags:
Career,
Contingent Compensation,
Director,
Professional Development,
Texas A&M International University
Source:
Texas A&M International University

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Overview: This paper focuses on the question, ĉIs there any way to distinguish between luck and talent in the careers of movie directors?Ĉ The answer is yes, but the difference is smaller than one might imagine. How are the most talented directors paid? Contingent compensation is the largest component of their pay and it is dominated by extreme outcomes. Director contracts condition pay on events of vanishing Gaussian probability. They have features completely at odds with the standard theory of contracts.

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Format: PDF | Size: 345KB | Date: Jun 2002 | Pages: 33

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