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Topic: Business
Number of pages / Number of words: 8 / 2100
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Although this means that it is unclear whether a sequel will be profitable until the original is produced, the studio itself would have the most information regarding this, and would be best able then to gauge the profitability of a sequel early on, even perhaps during early production of the first movie...


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This is unfavorable for Arundel, as they would be in a worse position to bargain prices as the less informed party. Their best bet is then to make the purchase at t=0, before production begins and more information regarding probable success becomes apparent to the studios. It effectively levels the playing field as far as equal information regarding the investment is concerned...


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