Non-Equity - Jawed A. Mirzai Econ 326 Professor Boyle April...

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Jawed A. Mirzai Econ 326 Professor Boyle April 9, 2010 No to Boycott Tours of Broadway shows are mostly Equity productions. However, some non- Equity tours of Broadway shows have become quite popular and highly profitable due to cheap cost of production and labor. In that sense, the Actors’ Equity Association claims that the people should boycott non-Equity tours because such tours are harmful both to the public and performers. The executive Director of Equity, Alan Eisenberg, said that “the call for a boycott was justified by several factors, including a growing number of nonunion tours in major cities around the country” (McKinley). Although many people support the boycott of non-Equity tours of Broadway shows, I consider the boycott creates inefficiency in terms of labor, and increases unemployment rate for artists due to fewer opportunities to work. By boycotting the non-Equity tours the demand for Actor’s Equity Association increases and Equities become a monopoly power. Artists will only get opportunities to perform through the union. However, becoming a member of Actor’s Equity Association is highly competitive at the first place and by boycotting the non-Equity tours it will make it even more competitive. “Equity membership is a hard-won honor and something of which to be proud. Many actors dream of the day they get their card” (www.actorsequity.org). Having said this, Equity will be able to gain the market power. Therefore, union can just pick the wage due to control of the labor supply. For example, Figure 1 can demonstrate monopoly union model where the union chooses wage (w) and firm
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responds by choosing the level of employment (N). Since union has the market power, it chooses to pay a higher wage and maximize the wage rate (Wu >Wc), then the firm chooses the level of employment (Nu < Nc). There are high barriers to entry that the performers face to gain membership into
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This note was uploaded on 05/04/2010 for the course EDUC 22331 taught by Professor Feev during the Spring '10 term at The School of the Art Institute of Chicago.

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Non-Equity - Jawed A. Mirzai Econ 326 Professor Boyle April...

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