Re: Economics can't explain everything
"The critical fact is, there is no one on earth that can reliable predict which one out of the 5 will succeed and which 4 will fail. "
That's not the way it works. It's more about risk assessment - how much are we investing, what do we think we are likely to get from it, and best/worst case estimates. Quentin Tarantino makes a lot more films than Terry Gilliam because Quentin Tarantino generally has hits and Terry Gilliam doesn't. You might lose your shirt on the next QT film, and Gilliam might make another Time Bandits, but the information you have is that QT is probably a better place to put your money.