DeVany's statement - Case Study Example

DeVany's ment a) For the period 1994 to 1999 calculate the Herfindahl index (H). Interpret your results and assess whether the Anti-trust authorities should be concerned.Takeover activity peaked again during the financial boom of the 1920's in what Jovanovic and Rousseau [2002] termed the "scale-economies wave." Improvements in marketing technique (including advertising, especially on radio) and technological developments including electrification, transportation and communications systems all contributed to this increased takeover activity.

Allied Chemical was one of the corporate giants formed from takeover activity during this period. There were a large number of horizontal, vertical and conglomerate takeovers in the 1920s. For example, several firms in the motion picture industry were active in all phases of movie production and distribution, even owning the cinemas where motion pictures were shown. The stock market crash of 1929 and the depression that followed led to a substantial contraction in takeover activity until the period during and following World War II.

While the Sherman Act and subsequent legislation has had a tremendous impact oncompetition in the U.S., E.U anti-trust regulations have affected both European and U.S.combinations. Articles 81 and 82 of the European Community Treaty prohibiting cartels and other "concerted practices" distorting competition along with prohibiting the willful acquisition or maintenance of monopoly power are similar to Sections 1 and 2 of the Sherman Act outlawing concerted action to restrain trade. Consider, for example, the proposed merger of General Electric and Honeywell International Inc., two U.S.

-based corporations, which was blocked by the European Union in 2001 even though U.S. antitrust regulators had already approved the deal. Jack Welch, then CEO of General Electric, complained that "European regulators' demands exceeded anything I or our European advisers imagined and differed sharply from antitrust counterparts in the U.S. and Canada."For the years chosen in part (a), calculate also the CR6. Do you expect H and CR6 to be related, and if so how' Are they actually related in the data'an order designed to pressure broadcasters into getting DTV signals on the air--or, at least, to "remind licensees of the importance of their DTV construction efforts," the FCC has ordered a series of sanctions for broadcasters that miss their DTV deadlines without good excuses.

The order matches the commission's earlier proposed sanctions, including the possibility of license revocation. The first level is a formal admonishing--an action already taken with scores of stations. Those still not in compliance six months later will be required to submit 30-day updates and will receive a notice of apparent liability for forfeiture, the first step toward a possible fine or other penalty. After one year, the FCC will consider the DTV licenses expired for stations still without extraordinary excuses.

Show that the risk to a producer of motion pictures can be reduced by constructing a portfolio of movies. g) In the light of your previous answers, do you agree with deVany that the oligopoly theory is not applicable to the motion picture industry' The producer is responsible for turning a film idea into a successful motion picture. The producer must find money to pay for the production, hire actors and the production team, supervise the production process, and make arrangements for distributing the finished film to theaters.

f the producer has obtained financing from a studio or film distributor, that organization may want a representative to be on hand during production. This person is called the executive producer. In addition, anyone who contributes substantially in any manner to the motion picture-with their time, money, or influence-may receive the credit of associate producer or some similar title.USDATE USYEAR TITLE USSCRNS USOPBO USBO RUSOPBO RUSBO RCUS RFORBO RCOST USDIST COST USDISTCD Screens at opening Opening w/e B-O Total US B-O Real US Opening B-O Real Total US B-O Ratio of B-O to Cost Real Foreign B-O Real negative Cost US Distributor Actual Negative Cost Code for Distributor 1987 prices 1987 prices 1987 prices 1987 prices 08-Jan-1988 1988 COP #NULL! #NULL! 1984315 #NULL! 1902507.2 .39 #NULL! 4887585.

5 ATLANTIC 5000000 23 08-Jan-1988 1988 LONE RUNNER 15 13135 16767 12593.5 16075.7 #NULL! #NULL! #NULL! TRANS WORLD ENT #NULL! 309 08-Jan-1988 1988 SCAVENGERS 88 195948 699118 187869.6 670295.3 .34 #NULL! 1955034.2 TRIAX ENT. 2000000 311 15-Jan-1988 1988 PATTI ROCKS 2 17306 345000 16592.5 330776.6 #NULL! #NULL! #NULL! FILMDALLAS #NULL! 109 15-Jan-1988 1988 RENT-A-COP 193 295000 295000 282838.0 282838.0 .03 #NULL! 9775171.1 KINGS ROAD ENT. 10000000 169 15-Jan-1988 1988 RETURN OF THE LIVING DEAD 2 1467 3647254 9205924 3496887.8 8826389.3 2.26 #NULL! 3910068.

4 LORIMAR 4000000 181 15-Jan-1988 1988 COUCH TRIP, THE 1332 3351891 11005304 3213701.8 10551585.8 #NULL! #NULL! #NULL! ORION #NULL! 228 15-Jan-1988 1988 FOR KEEPS 922 4839790 17514553 4640258.9 16792476.5 1.43 #NULL! 11730205.3 TRISTAR 12000000 314 21-Jan-1988 1988 HALF OF HEAVEN 1 7308 52841 7006.7 50662.5 #NULL! #NULL! #NULL! SKOURAS #NULL! 280 22-Jan-1988 1988 KING LEAR 1 8756 61821 8395.0 59272.3 #NULL! #NULL! #NULL! CANNON #NULL! 48 22-Jan-1988 1988 BRADDOCK: MISSING IN ACTION 3 1040 2208116 6193901 2117081.5 5938543.6 .64 #NULL! 9286412.

5 CANNON 9500000 48 22-Jan-1988 1988 FIVE CORNERS 12 78602 969205 75361.5 929247.4 #NULL! #NULL! #NULL! CINEPLEX/ODEON #NULL! 62 22-Jan-1988 1988 GRAND HIGHWAY, THE 1 26727 760539 25625.1 729184.1 .28 #NULL! 2639296.2 MIRAMAX 2700000 197 22-Jan-1988 1988 TELEPHONE, THE 50 54811 99978 52551.3 95856.2 #NULL! #NULL! #NULL! NEW WORLD #NULL! 218 22-Jan-1988 1988 FAMILY, THE 1 10590 346730 10153.4 332435.3 #NULL! #NULL! #NULL! VESTRON #NULL! 325 22-Jan-1988 1988 PROMISED LAND 6 31401 316199 30106.4 303163.0 #NULL! #NULL! #NULL! VESTRON #NULL!

325 29-Jan-1988 1988 BORN TO RACE 135 19527 28405 18722.0 27233.9 .01 #NULL! 4398827.0 MGM/UA 4500000 194 29-Jan-1988 1988 LIGHT YEARS 7 48665 370698 46658.7 355415.1 .07 #NULL! 5376344.1 MIRAMAX 5500000 197 29-Jan-1988 1988 BIGGLES: ADVENTURES IN TIME 72 85692 112132 82159.2 107509.1 #NULL! #NULL! #NULL! N.CENTURY/VISTA #NULL! 213 29-Jan-1988 1988 ANGUISH 94 228789 228789 219356.7 219356.7 #NULL! #NULL! #NULL! SPECTRAFILM #NULL! 290 29-Jan-1988 1988 YOU CAN'T HURRY LOVE 156 223605 333152 214386.4 319417.1 #NULL! #NULL! #NULL!

VESTRON #NULL! 325 05-Feb-1988 1988 JULIA AND JULIA 286 510167 901364 486800.6 860080.2 .11 #NULL! 8066083.6 CINECOM 8300000 56 05-Feb-1988 1988 SUPERGRASS, THE #NULL! #NULL! 10000 #NULL! 9542.0 #NULL! #NULL! #NULL! HEMDALE #NULL! 142 05-Feb-1988 1988 APPRENTICE TO MURDER 109 140332 466369 133904.6 445008.6 #NULL! #NULL! #NULL! NEW WORLD #NULL! 21805-Feb-1988 1988 SISTER, SISTER 212 316420 743445 301927.5 709394.1 #NULL! #NULL! #NULL! NEW WORLD #NULL! 218 05-Feb-1988 1988 SLUGS 7 15842 32965 15116.4 31455.2 #NULL! #NULL! #NULL!

NEW WORLD #NULL! 218 05-Feb-1988 1988 IN-CROWD, THE #NULL! #NULL! 136567 #NULL! 130312.0 #NULL! #NULL! #NULL! ORION #NULL! 228 05-Feb-1988 1988 UNBEARABLE LIGHTNESS OF BEING 13 202189 10006806 192928.4 9548479.0 .56 #NULL! 17006802.7 ORION 17500000 228 05-Feb-1988 1988 CHERRY 2000 8 7383 15849 7044.8 15123.1 .00 #NULL! 9718173.0 ORION 10000000 228 05-Feb-1988 1988 SHE'S HAVING A BABY 925 3827520 16031707 3652213.7 15297430.3 .87 #NULL! 17492711.4 PARAMOUNT 18000000 239 05-Feb-1988 1988 SERPENT AND THE RAINBOW, THE 1430 5848700 19595031 5580820.

6 18697548.7 1.92 #NULL! 9718173.0 UNIVERSAL 10000000 323 05-Feb-1988 1988 BEAT, THE 6 3207 16199 3060.1 15457.1 #NULL! #NULL! #NULL! VESTRON #NULL! 325 12-Feb-1988 1988 TIGER'S TALE, A 21 37018 88895 35322.5 84823.5 .01 #NULL! 6802721.1 ATLANTIC 7000000 23 12-Feb-1988 1988 SHOOT TO KILL 1503 5781628 29300090 5516820.6 27958101.1 1.92 #NULL! 14577259.5 BUENA VISTA 15000000 42 12-Feb-1988 1988 TRAVELLING NORTH 1 3886 214722 3708.0 204887.4 #NULL! #NULL! #NULL! CINEPLEX/ODEON #NULL! 62 12-Feb-1988 1988 SCHOOL DAZE 220 1802656 14545844 1720091.

6 13879622.1 2.20 #NULL! 6316812.4 COLUMBIA 6500000 69 12-Feb-1988 1988 ACTION JACKSON 1249 5424783 20256975 5176319.7 19329174.6 1.99 #NULL! 9718173.0 LORIMAR 10000000 181 12-Feb-1988 1988 AU REVOIR, LES ENFANTS 1 59847 4542825 57105.9 4334756.7 #NULL! #NULL! #NULL! ORION CLASSICS #NULL! 229 12-Feb-1988 1988 SATISFACTION 1015 2779275 8253123 2651980.0 7875117.4 2.03 #NULL! 3887269.2 TWENTIETH CENTURY FOX 4000000 319 19-Feb-1988 1988 MONTH IN THE COUNTRY, A 1 12852 443524 12263.4 423209.9 #NULL! #NULL! #NULL!

ORION CLASSICS #NULL! 229 26-Feb-1988 1988 BLOODSPORT 123 515721 11806119 492100.2 11265380.7 4.64 #NULL! 2429543.2 CANNON 2500000 48 26-Feb-1988 1988 TAFFIN 204 107303 159969 102388.4 152642.2 .03 #NULL! 4859086.5 MGM/UA 5000000 194 26-Feb-1988 1988 HAIRSPRAY 79 577287 6671108 550846.4 6365561.1 2.62 #NULL! 2429543.2 NEW LINE 2500000 216 26-Feb-1988 1988 68 7 24504 64476 23381.7 61522.9 #NULL! #NULL! #NULL! NEW WORLD #NULL! 218 26-Feb-1988 1988 ALOHA SUMMER 123 259867 418379 247964.7 399216.6 #NULL! #NULL! #NULL! SPECTRAFILM #NULL!

290 26-Feb-1988 1988 JIMMY REARDON 881 2737106 6264058 2611742.4 5977154.6 1.76 #NULL! 3401360.5 TWENTIETH CENTURY FOX 3500000 319 26-Feb-1988 1988 FRANTIC 1101 4359424 17637950 4159755.7 16830105.0 1.02 #NULL! 16520894.1 WARNER BROS. 17000000 329 04-Mar-1988 1988 GOR #NULL! #NULL! 159731 #NULL! 151691.4 #NULL! #NULL! #NULL! CANNON #NULL! 48 04-Mar-1988 1988 PASS THE AMMO 56 98159 169785 93218.4 161239.3 .03 #NULL! 5802707.9 N.CENTURY/VISTA 6000000 213 04-Mar-1988 1988 HOUSE ON CARROLL STREET, THE 31 161749 459824 153607.8 436680.0 .04 #NULL! 11121856.

9 ORION 11500000 228 04-Mar-1988 1988 BABETTE'S FEAST 1 15606 4398938 14820.5 4177529.0 1.73 #NULL! 2417795.0 ORION CLASSICS 2500000 229 04-Mar-1988 1988 SWITCHING CHANNELS 971 3121752 9129999 2964626.8 8670464.4 .60 #NULL! 14506769.8 TRISTAR 15000000 314Works Cited[1] Robert L. Devaney, "An Introduction to Chaotic Dynamical Systems:, Addison-Wesley, 1989 [2] Denny Gullick, "Encounters With Chaos", McGraw Hill, 1992 [3] D. Assaf and S. Gadbois, "Definition of Chaos", American Mathematical Monthly 99 (1992) 865.