Price Discovery ...in acting

A simple principle that is surprisingly poorly understood by the public at large is the basic concept of Price Discovery.

It’s a favourite lens of mine when it comes to viewing trends and understanding what’s going on in markets undergoing disruption.  It’s not always clear that Price Discovery is the dynamic in play, but not considering it is a mistake as it leads to what I call “the frustration of unexplained events” - where those affected by change are unable to detect the pattern of cause and effect with regards to that change, and therefore feel powerless, frustrated, angry.

I heard an actor on NPR bleating about how terrible the industry is today, as just a few years ago bit-part, middle-of-the-road guest stars on everyday TV shows could make incomes of $600-700k per yearr but now make just a fraction of that nowadays.