Incentive plans improvement in movie value chain: USA motion picture industry

Abstract

The purpose of the research is to investigate the motives of cooperation in the movie production and to improve the methodology of incentive income imputation formation on the basis of appropriate game-theoretical model construction. As a result a systematized methodology of the income imputations definition generated by the product of cooperation (movie), which can be used as a decision-making support tool in negotiations about shares of the income allocation among the participants of the cooperation of the movie creation, has been elaborated. It should be accentuated that it is not assumed that the implementation of the methodology will give the revenue imputations, which could be taken as per se, however, it can become a substantial help during negotiations of the parties involved about their participation in revenue. The applicability of the methodology has been tested on the cases from Hollywood practice.