Valuation under randomness of players in coalitions, with an application to the Dutch filmindustry

Abstract

In this paper we introduce a new and objective method to measure the quality of proposals from collaborating professionals. The quality or potential of a professional in a proposal is in uenced by a random environment. We derive a (numerical) value which measures the potential of a proposal by collaborating professionals. Furthermore, we provide the best linear unbiased estimator of the potential of a professional.\ud We apply our method to estimate the values of Dutch films, from collaborating producers and filmmakers, released in 2010. Our method is shown to obtain good results. Furthermore, as a by-product we rank producers, directors and screenwriters of Dutch films up to 2011. These rankings are concluded to be fair