Bose-Einstein Dynamics and Adaptive Contracting in the Motion Picture Industry.

Audiences discover what films they like and spread the word. Information feedback produces Bose-Einstein dynamics in the motion picture box office revenue distribution. Information cascades generate box office 'hits' and 'flops.' The revenue distribution evolves recursively over the 'run' as a mixture of the 'opening' and a stochastic competition among films. The motion picture run is decentralized, adaptive, and self-organizing: semistationary admission prices, local information, and contingency-rich contracts match the film rental price and the supply of theatrical engagements to demand. Copyright 1996 by Royal Economic Society.