Gerald D. and Catherine Leibowitz - Page 33

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          memorabilia.  At the time of trial, Warren maintained a database            
          of prices of over 100,000 items of movie memorabilia.                       
               Warren assumed that the relevant market was the movie                  
          memorabilia convention.  He based his assumption on the buyer’s             
          being a knowledgeable collector who performed, or should have               
          performed, an appropriate amount of research prior to entering              
          the convention market, which is a mixed wholesale/retail market.            
          Warren asserted that the single key element in pricing movie                
          memorabilia is demand by collectors for a given title.                      
               The interplay of these two assumptions was critical to how             
          Warren priced several categories of memorabilia in the                      
          collection.  He heavily discounted the value of foreign posters             
          because he maintained that there was little or no demand for them           
          in the mid-1980's.  In Warren's view, collectors viewed foreign             
          posters of American films as inauthentic novelties, and that only           
          when domestic posters, especially one-sheets, began to rise                 
          dramatically in price after 1985 did collectors begin to show               
          interest in foreign posters of American films.  According to                
          Warren, twenty-four-sheets were considered virtually worthless in           
          the 1985 movie memorabilia markets because of their size.  The              
          only twenty-four-sheets then in demand were classic titles such             
          as “Gone With the Wind”.  Warren contends that three-sheets and             
          six-sheets were likewise virtually worthless in 1985, although              
          they subsequently came to be worth as much as one-sheets, if not            
          more.                                                                       




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