Exhibitor Setting Sample Clauses

Exhibitor Setting. After accepting the contract from the distributor, the theater will decide the number of movie screening according to the potential revenue per screening and the theater’s sharing ratio of the movie upon the approval of the distributor. At the beginning of the first period, she will decide the number of movie screening in the first period 𝑞1. Similar to the distributor, the theater fails to realize whether this movie is a hit or a flop in the first period. She only knows the probability of the movie being a hit, the potential revenue per movie screening in each period, and the changing rate in the potential revenue per screening. At the end of the first period, when the movie is a hit, she will decide the number of movie screening in the second period 𝑞2ℎ . However, when the movie is a flop, she will first decide whether to adopt promotional efforts or not, and then decide the number of Figure 1: Time sequence of the two-period supply chain movie screening in the second period 𝑞2𝑙. We assume that, if the theater adopts promotional efforts, then the potential revenue per screening will increase from 𝑘𝑅𝑙 to 𝑘 . However, a cost 𝑡(𝑘 − 𝑘𝑅𝑙) will be produced per screening. Without losing generality, we normalize the cost of the theater to 0. Figure 1 shows the time sequence of the supply chain. Table 1: Parameter and decision variable 𝑘 The adjusted rate of the potential revenue per screening in Period 2 𝛼 The theater’s adjusted sharing ratio in Period 2 𝑞1 The number of movie screening in Period 1 𝑞2𝑠 The number of movie screening in Period 2 under the condition 𝑠 = ℎ, 𝑙