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Television Advertising Regulation and Program Quality

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  • DONALD J. WRIGHT

Abstract

In many countries, including Australia and the United Kingdom, there are regulations that limit the amount of advertising content per hour of television broadcasts. This paper examines the effect this regulation has on program quality and viewer welfare. It is shown that regulation can reduce program quality and that its effect on viewer welfare is ambiguous. In some circumstances fostering competition can both reduce the number of advertisements per unit of time and increase program quality. Therefore, depending on the parameters of the model, fostering competition may be preferrable to regulating the amount of advertisements per unit of time.

Suggested Citation

  • Donald J. Wright, 1994. "Television Advertising Regulation and Program Quality," The Economic Record, The Economic Society of Australia, vol. 70(211), pages 361-367, December.
    • Handle: RePEc:bla:ecorec:v:70:y:1994:i:211:p:361-367
    DOI: 10.1111/j.1475-4932.1994.tb01854.x
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    Cited by:

    1. Anderson, Simon P. & Gabszewicz, Jean J., 2006. "The Media and Advertising: A Tale of Two-Sided Markets," Handbook of the Economics of Art and Culture, in: V.A. Ginsburgh & D. Throsby (ed.), Handbook of the Economics of Art and Culture, edition 1, volume 1, chapter 18, pages 567-614, Elsevier.
    2. Simon P. Anderson & Stephen Coate, 2005. "Market Provision of Broadcasting: A Welfare Analysis," Review of Economic Studies, Oxford University Press, vol. 72(4), pages 947-972.
    3. Lapo Filistrucchi & Andrea Mangani & Luigi Luini, 2012. "Banning Ads from Prime-Time State TV: Lessons from France," Working Papers 12-23, NET Institute.
    4. Henriques, David, 2020. "Effects of TV airtime regulation on advertising quality and welfare," LSE Research Online Documents on Economics 106963, London School of Economics and Political Science, LSE Library.
    5. Greiner, Tanja & Sahm, Marco, 2018. "How effective are advertising bans? On the demand for quality in two-sided media markets," Information Economics and Policy, Elsevier, vol. 43(C), pages 48-60.
    6. Henriques, David, 2021. "Effects of TV airtime regulation on advertising quality and welfare," Information Economics and Policy, Elsevier, vol. 55(C).
    7. Christian Jansen, 2003. "Convergence and the Potential Ban on Interactive Product Placement in Germany," Law and Economics 0302002, University Library of Munich, Germany.

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