Aesthetic evaluation is central to the motion picture industry. However, the industry does notusually create art for art's sake - it processes complex inputs from many different fields of art with the ultimate goal of making a profit. Our major findings highlight the dual role of soft and hard information in the successful sale of intellectual property-the screenplays. The screenwriter's experience and past success, which can be easily expressed in measurable terms, are very important, and increase the prices paid. However, the presence of soft information in the sales pitch, as indicated by our proxies, depresses prices. That is, screenplays characterized in "softer" terms, particularly if they are written by lesser-known writers, command substantially lower prices. Various manifestations of soft information are also shown to increase the probability of a contingent contract. This suggests that contingent contracts may allow contracting in an environment where uncertainty and asymmetric information interact. However, reputation increases the probability of receiving cash upfront.
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