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Network Competition and the Timing of Commercials

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Author Info

  • Gil S. Epstein

    (Department of Economics, Bar-Ilan University, Ramat Gan 52900, Israel)

Abstract

In a market with a small number of networks, the timing of the commercial breaks is a very important factor in determining the number of viewers facing a channel. Using a theoretical model and statistical analysis with empirical data from the four networks in the United States, we analyze the equilibrium achieved in this network monopolistic competition. Among other things, it is shown theoretically and empirically that in equilibrium all networks broadcast commercial breaks at the same time. As the ability to coordinate is not always possible, it is shown that, as the program progresses, the level of coordination decreases.

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File URL: http://dx.doi.org/10.1287/mnsc.44.3.370
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Bibliographic Info

Article provided by INFORMS in its journal Management Science.

Volume (Year): 44 (1998)
Issue (Month): 3 (March)
Pages: 370-387

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Handle: RePEc:inm:ormnsc:v:44:y:1998:i:3:p:370-387

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Related research

Keywords: Network Promotions; Competition; Timing of Commercials; Competitive Strategies;

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Cited by:
  1. Andrew Sweeting, 2008. "The Strategic Timing Incentives of Commercial Radio Stations: An Empirical Analysis Using Multiple Equilibria," NBER Working Papers 14506, National Bureau of Economic Research, Inc.
  2. Tomas Kadlec, 2002. "Optimal Timing of TV Commercials: Symmetrical Model," CERGE-EI Working Papers wp195, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
  3. Andrew Sweeting, 2005. "Coordination Games, Multiple Equilibria and the Timing of Radio Commercials," 2005 Meeting Papers 490, Society for Economic Dynamics.

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