What determines the boundaries of the firm? In this paper, we explore that question, using the Grossman, Hart, and Moore property rights theory (PRT) and employing a unique proxy for non-contractible investment. During the famous Hollywood studio era of the 1930s and 1940s, actors worked for...

The Hollywood studio era of the 1930s and 1940s was remarkable for its abundance of glamorous stars. In this paper, we investigate whether the vertical structure of the Hollywood studios, by ensuring studio claims to “star capital,” spurred higher levels of investment in discovering stars...

The Hollywood quot;studio systemquot; - with production, distribution, and exhibition vertically integrated - flourished from the late teens until 1948, when the U.S. Supreme Court issued its famous Paramount decision. The Paramount consent decrees required the divestiture of affiliated theater...

We explore the effect of long-term exclusive contracts between firms and workers on firm investment in employee general human capital, examining the de facto lifetime contracts between movie producers and actors that were used during the famous Hollywood studio era of the 1930s and 1940s. We...