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Canadian Content Laws and Programming Diversity

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  • C. Leigh Anderson
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    Abstract

    By law, 50 percent of private Canadian television broadcasters' programming must be Canadian. The author proposes that the laws promote one mandate of broadcasting policy by increasing programming diversity. The quotas induce substitution out of the dominant category and into other categories, in response to differential costs and revenues between domestic and imported programming. To test the hypothesis, profit maximizing programming that would exist without the regulations is simulated.and compared to observed programming. Herfindahl indices (calculated for predicted and observed programming, across stations, and across time), indicate that under some assumptions of broadcaster behavior, diversity across stations is higher with the content laws than without.

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    Bibliographic Info

    Article provided by University of Toronto Press in its journal Canadian Public Policy.

    Volume (Year): 18 (1992)
    Issue (Month): 2 (June)
    Pages: 166-175

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    Handle: RePEc:cpp:issued:v:18:y:1992:i:2:p:166-175

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    1. Keith Acheson & Christopher Maule, 1990. "Canadian Content Rules: A Time for Reconsideration," Canadian Public Policy, University of Toronto Press, University of Toronto Press, vol. 16(3), pages 284-297, September.
    2. B.Curtis Eaton & Richard G. Lipsey, 1972. "The Principle of Minimum Differentiation Reconsidered: Some New Developments in the Theory of Spatial Competition," Working Papers, Queen's University, Department of Economics 87, Queen's University, Department of Economics.
    3. Beebe, Jack H, 1977. "Institutional Structure and Program Choices in Television Markets," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 91(1), pages 15-37, February.
    4. Spence, Michael, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 43(2), pages 217-35, June.
    5. Lindsay, Cotton M, 1976. "A Theory of Government Enterprise," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 84(5), pages 1061-77, October.
    6. M. S. Shedd & E. A. Wilman & R. D. Burch, 1990. "An Economic Analysis of Canadian Content Regulations and a New Proposal," Canadian Public Policy, University of Toronto Press, University of Toronto Press, vol. 16(1), pages 60-72, March.
    7. Perloff, Jeffrey M & Salop, Steven, 1984. "Equilibrium with product differentiation," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series, Department of Agricultural & Resource Economics, UC Berkeley qt4cq0m6s3, Department of Agricultural & Resource Economics, UC Berkeley.
    8. C. G. Hoskins & Stuart McFadyen, 1982. "Market Structure and Television Programming Performance in Canada and the U.K.: A Comparative Study," Canadian Public Policy, University of Toronto Press, University of Toronto Press, vol. 8(3), pages 347-357, Summer.
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    Cited by:
    1. Nilssen, Tore & Sorgard, Lars, 2002. "A public firm challenged by entry: duplication or diversity?," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 32(2), pages 259-274, March.
    2. C. Leigh Anderson & Gene Swimmer & Wing Suen, 1997. "An empirical analysis of viewer demand for U.S. programming and the effect of Canadian broadcasting regulations," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 16(4), pages 525-540.

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