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Television Advertising Regulation and Program Quality

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  • Wright, Donald J

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 preferable to regulating the amount of advertisements per unit of time. Copyright 1994 by The Economic Society of Australia.

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Bibliographic Info

Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 70 (1994)
Issue (Month): 211 (December)
Pages: 361-67

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Handle: RePEc:bla:ecorec:v:70:y:1994:i:211:p:361-67

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Cited by:
  1. Yong Liu & Daniel S. Putler & Charles B. Weinberg, 2004. "Is Having More Channels Really Better? A Model of Competition Among Commercial Television Broadcasters," Marketing Science, INFORMS, INFORMS, vol. 23(1), pages 120-133, July.
  2. ANDERSON, Simon P. & GABSZEWICZ, Jean J., . "The media and advertising: a tale of two-sidedmarkets," CORE Discussion Papers RP -1888, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. 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.
  4. Lapo Filistrucchi & Andrea Mangani & Luigi Luini, 2012. "Banning Ads from Prime-Time State TV: Lessons from France," Working Papers, NET Institute 12-23, NET Institute.
  5. Christian Jansen, 2003. "Convergence and the Potential Ban on Interactive Product Placement in Germany," Law and Economics, EconWPA 0302002, EconWPA.
  6. Yong Liu & Daniel Putler & Charles Weinberg, 2006. "The welfare and equity implications of competition in television broadcasting: the role of viewer tastes," Journal of Cultural Economics, Springer, Springer, vol. 30(2), pages 127-140, September.
  7. Simon P. Anderson & Stephen Coate, 2000. "Market Provision of Public Goods: The Case of Broadcasting," NBER Working Papers 7513, National Bureau of Economic Research, Inc.

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