Mike,
Allocation is an interesting animal. It's sort of a way of creating equality without really creating equality. The best way I can explain it is through an example.
In our zone there are 30 screens - a 14 plex, a six plex and 2 five plexes. One of the 5 plexes is mine. The other 5 and the 6 are operated by a long established major chain. The 14 plex is brand new built by a long established local exhibitor (who used to run my 5 plex) - its state of the art everything. Supposedly this is an allocation market, but I run an arthouse so I don't want most of the studio product - I do however want and feel that I'm entitled to all the art product. However, both of my competitiors - the major chain and the 14 plex are interested in art product the 14 as filler and the major chain as a way to survive. So lets take a distributor and I'll show you how the allocation was done this summer. From Miramax we got East is East and Hamlet, the major chain got Boys and Girls, the 14 plex got Scarry Movie. Not bad from my point of view - we got 10 weeks out of East is East. The next group of films is Love's Labours, Butterfly, About Adam (I think that's the title) and the next Highlander movies. According to my bookers, Miramax is very high on Higlander and wants it at the 14 plex. So, I had to choose between Love's Labours, Butterfly and About Adam which title I didn't want. It was a hard decision to make as I really wanted all three. The one I didn't want is going to the major chain. The point to this story is that allocation does not mean equality. Either you or your booker has to get in there and sell the distrib on why your theatre should get films X and Y and give Z to the other guy. You also have to prove that you can gross and there are ways to get the attention of the distribs in this regard if you are in or proximate to a major market. Sometimes I don't like the immediate results of allocation but I and my bookers have to take a long term view. Get the films where you know you are going to have wholes in your schedule. Give up the dogs and market the heck out of everything you get. If you know you aren't getting it, pull the trailers, posters etc. Don't do any work for the other guy. Remember the distributors hold all the cards - ultimately its their decision where to put their product - so you have to sell your theatre and your ability to deliver an audience and a gross.
Hope this helps. I can't say it works like this in every market or situation but that is our recent experience with allocation. Good luck.