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Time Schedule and Program Profile: TV News in Norway and Denmark

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  • Tore Nilssen
  • Lars Sørgard

Abstract

Two TV channels compete on programming with respect to both time schedule (continuous choice) and program profile (discrete choice), with a directional constraint concerning time schedule (viewers cannot watch TV before they get home). We show how the relative importance of program profile and time schedule, as perceived by the viewers, determines the equilibrium outcome. Furthermore, we find that there is a first-mover disadvantage in a sequential game where one channel sets its two choice variables before its rival does, and a first-mover advantage in a semise-quential game where the channels set time schedules sequentially and thereafter set program profiles simultaneously. The results are applied to the Norwegian and Danish markets for TV news, where number-two channels have challenged the incumbents. Copyright (c) 1998 Massachusetts Institute of Technology.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Economics & Management Strategy.

Volume (Year): 7 (1998)
Issue (Month): 2 (06)
Pages: 209-235

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Handle: RePEc:bla:jemstr:v:7:y:1998:i:2:p:209-235

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Web page: http://www.kellogg.northwestern.edu/research/journals/JEMS/

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Web: http://www.blackwellpublishing.com/journal.asp?ref=1058-6407&site=1

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Cited by:
  1. Tore Nilssen & Lars Sørgard, 2003. "TV Advertising, Program Quality, and Product-Market Oligopoly," Industrial Organization 0303012, EconWPA.
  2. Maarten C.W. Janssen & Vladimir A. Karamychev & Peran van Reeven, 2003. "Multi-Store Competition: Market Segmentation or Interlacing?," Tinbergen Institute Discussion Papers 03-033/1, Tinbergen Institute.
  3. Diana Barrowclough, 2001. "Spilling Over and Crowding Out: The Effects of Public Sector/Private Sector Convergence and Competition, in the Provision of Public Goods," CESifo Working Paper Series 569, CESifo Group Munich.
  4. Maarten C.W. Janssen & Vladimir A. Karamychev & Peran van Reeven, 2003. "Multi-Store Competition: Market Segmentation or Interlacing?," Tinbergen Institute Discussion Papers 03-033/1, Tinbergen Institute.
  5. 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, Elsevier.
  6. Takeshi Ebina & Daisuke Shimizu, 2012. "A unidirectional Hotelling model revisited," Economics Bulletin, AccessEcon, vol. 32(4), pages 2870-2875.
  7. Bourreau, Marc, 2003. "Mimicking vs. counter-programming strategies for television programs," Information Economics and Policy, Elsevier, vol. 15(1), pages 35-54, March.
  8. Nilssen, Tore & Sorgard, Lars, 2002. "A public firm challenged by entry: duplication or diversity?," Regional Science and Urban Economics, Elsevier, vol. 32(2), pages 259-274, March.
  9. Alcock, Jamie & Docwra, George, 2005. "A simulation analysis of the market effect of the Australian Broadcasting Corporation," Information Economics and Policy, Elsevier, vol. 17(4), pages 407-427, October.
  10. Lai, Fu-Chuan, 2001. "Sequential locations in directional markets," Regional Science and Urban Economics, Elsevier, vol. 31(5), pages 535-546, September.

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