From 1975-1985, theater owners were required to bid on films without seeing them, an industry practice referred to as qblind bidding.q Movie companies considered blind bidding a necessary way to finance blockbuster films, but theater owners claimed that blind bidding resulted in the overbidding of poor quality films. In response to the lobbying of theater owners, twenty-four states passed anti-blind bidding laws between 1978--1984. This dissertation investigates claims made by theater owners and movie companies about the impact of blind bidding on the survival rates of independent theaters, admission prices, and delays in the release of films. I find the anti-blind bidding laws significantly helped theater owners remain in business longer. However, the beneficial effect was short-lived. In addition, I find that the laws raised admission prices but did not cause delays in release dates.On occasion, Variety reported theaters which charged one dollar for admission. ... and Renaissance, and theaters such as the Dearborn, Americana West, and Macomb Mall from surrounding areas of Wayne, Oakland, and Macomb counties.
|Title||:||The Impact of Blind Bidding on Market Structure and Performance in the U.S. Motion Picture Industry|
|Publisher||:||ProQuest - 2008|