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"Coming Soon: A Theater Near You" Case Questions
Read the case "Coming Soon: A Theater Near You" (HBS 9-797-011). Then consider the following questions:
1. Are the trading relationships between the movie studios and the movie exhibitors stable? Which trading partner has more power at the time of negotiation to exhibit a movie?
2. Who has invested in "specific assets"? What makes them specific?
3. Who has bargaining power in this industry? Give evidence from the case for your answer.
4. Is there a hold-up problem in this case? What options are available to the exhibitors for reducing the hold-up problem?
5. Why are movie exhibitors opening large multiplexes and diminishing screen sizes?
6. Is there a bilateral hold-up problem? What are the possible solutions to the problem?
Now imagine that the income tax was regressive, and the percentage that each person paid was reversed so that the richest people paid the least.
Two traditional economies are trying to industrialize. The leaders of the first favor a command economic system. The leaders of the second want to try more free market-based policies. Which of the following actions would likely occur in one but no..
Briefly explain the concept of economic disruption before describing why the innovation is economically disruptive and how it changed and/or continues to change
i) Calculate the price at which you bought the bond and the price at which you sell it if you sold it now
You are given that the Quantity Demanded (Qd) for a good is is a function of Prince (P) described by the following: Qd = 10 - (1/2)P or P = 20 - 2 (Qd)
Explain what you would rather maximize, your total or marginal utility. Analyze how you would focus on your utility in making consumption decisions.
American-based businesses become more global every day. With changes in national and international demographics, we are seeing many American businesses participate in the global workforce.
How do these theories help you better understand the different aspects of global trade?
Copy and paste the following data into Excel:
Which of the following is a building block of neoclassical economics?
Leopold Bus Company runs daily service between Bigcity and Tinytown. It calculates that the average cost per trip (wages, gas, insurance, payments on loans, etc.) is $140. Leopold sells the bus tickets for $5 each. Will the sales of the standby ticke..
Joe deposited $2206 into an account paying 6% compounded annually. In year 4 he made an additional deposit of $3430, but in year 8 he had to withdraw $630. How much does Joe have in his account in 25 years?
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