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Regulating Advertising in the Presence of Public Service Broadcasting

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  • Stühmeier Torben

    (University of Düsseldorf)

  • Wenzel Tobias

    (University of Düsseldorf)

Abstract

Television advertising levels in Europe are regulated according to the "Audiovisual Service Media Directive", where member states of the European Union usually impose stricter regulation on their Public Service Broadcasting (PSB) channels. The present model evaluates the effects of symmetric and asymmetric regulation of ad levels on competition for viewers and advertisers in a duopoly framework where a public and a private broadcaster compete. If both broadcasters face the same advertising cap, regulation can be profit-increasing for both channels. If the public broadcaster is more strictly regulated, this may benefit the commercial rival if higher revenues in the advertising market outweigh the loss in viewership.

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Bibliographic Info

Article provided by De Gruyter in its journal Review of Network Economics.

Volume (Year): 11 (2012)
Issue (Month): 2 (June)
Pages: 1-23

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Handle: RePEc:bpj:rneart:v:11:y:2012:i:2:n:1

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Citations

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Cited by:
  1. Rothbauer, Julia & Sieg, Gernot, 2011. "Welfare effects of public service broadcasting in a free-to-air TV market," Economics Department Working Paper Series 13, Technische Universität Braunschweig, Economics Department.
  2. Stühmeier Torben & Wenzel Tobias, 2012. "Regulating Advertising in the Presence of Public Service Broadcasting," Review of Network Economics, De Gruyter, vol. 11(2), pages 1-23, June.
  3. Miguel González-Maestre & Francisco Martínez-Sánchez, 2014. "The role of platform quality and publicly owned platforms in the free-to-air broadcasting industry," SERIEs, Spanish Economic Association, vol. 5(1), pages 105-124, March.
  4. Julia Rothbauer & Gernot Sieg, 2013. "Are commercial ceilings adequate for the regulation of commercial overload on free-to-air TV channels?," Working Papers 19, Institute of Transport Economics, University of Muenster, revised May 2014.
  5. Lapo Filistrucchi & Andrea Mangani & Luigi Luini, 2012. "Banning Ads from Prime-Time State TV: Lessons from France," Working Papers 12-23, NET Institute.
  6. Francisco Martínez-Sánchez & Miguel González-Maestre, 2012. "Quality choice and advertising regulation in broadcasting markets," Working Papers. Serie AD 2012-03, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

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