Revenue-sharing agreements in the live entertainment industry: a practical risk analysis framework

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dc.contributor.authorCharlin, Ventura
dc.contributor.authorCifuentes, Arturo
dc.date.accessioned2025-01-20T16:11:12Z
dc.date.available2025-01-20T16:11:12Z
dc.date.issued2024
dc.description.abstractRevenue-sharing agreements are very common in the live entertainment industry. Such agreements typically include a minimum revenue guarantee for the benefit of the entertainer, combined with a formula to split the revenue, in case the revenue exceeds the minimum guarantee. In essence, these are derivative contracts between the event organizer (O) and the entertainer (E). This study introduces several closed-form expressions to evaluate the risks associated with these contracts for both parties (O and E). These expressions enable the estimation of revenue for each party based on the type of agreement and the valuation of the embedded option. Notably, the expressions do not require an assumption of symmetrical information-O and E can have access to different sets of information. Additionally, the expressions are valid regardless of the risk profiles of O and E, which could be different. Finally, the usefulness of the approach is demonstrated with an example that includes a scenario analysis, that is, exploring how variations in the two key parameters defining the revenue agreement affect the revenues of both O and E.
dc.fuente.origenWOS
dc.identifier.doi10.1057/s41272-024-00501-w
dc.identifier.eissn1477-657X
dc.identifier.issn1476-6930
dc.identifier.urihttps://doi.org/10.1057/s41272-024-00501-w
dc.identifier.urihttps://repositorio.uc.cl/handle/11534/90257
dc.identifier.wosidWOS:001287460100001
dc.issue.numero5
dc.language.isoen
dc.pagina.final395
dc.pagina.inicio384
dc.revistaJournal of revenue and pricing management
dc.rightsacceso restringido
dc.subjectRevenue management
dc.subjectRevenue-sharing agreements
dc.subjectMinimum revenue guarantees
dc.subjectFinancial derivatives
dc.subjectLive entertainment
dc.subject.ods12 Responsible Consumption and Production
dc.subject.odspa12 Producción y consumo responsable
dc.titleRevenue-sharing agreements in the live entertainment industry: a practical risk analysis framework
dc.typeartículo
dc.volumen23
sipa.indexWOS
sipa.trazabilidadWOS;2025-01-12
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