Profit-Sharing Versus Fixed-Payment Contracts: Evidence from the Motion Pictures Industry

Posted: 24 Sep 1997

Abstract

The choice between sharing and fixed-payment compensation schemes is examined using data on contracts from the motion-pictures industry. Several competing explanations are explored, including moral hazard mitigation, risk sharing, liquidity constraints, and the superstar phenomenon. Detailed descriptive statistics are presented, and qualitative variation in contracting clauses is analyzed within this industry's institutional setting.

JEL Classification: L14, D23, L82

Suggested Citation

Chisholm, Darlene C., Profit-Sharing Versus Fixed-Payment Contracts: Evidence from the Motion Pictures Industry. Available at SSRN: https://ssrn.com/abstract=10907

Darlene C. Chisholm (Contact Author)

Suffolk University ( email )

Department of Economics
8 Ashburton Place
Boston, MA 02108
United States
617-305-1932 (Phone)
617-994-4216 (Fax)

HOME PAGE: http://www.suffolk.edu/college/3255.html

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