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Cultural quotas in broadcasting I: a model

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  • Martin Richardson

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Abstract

This paper develops a Hotelling location model in which two radio stations choose combinations of local and international content to play, given consumers with preferences distributed over those combinations. Station revenue derives from sales of advertising time, the demand for which depends negatively on the price and positively on the station’s market share and consumers get disutility from advertising and from a less-than-ideal broadcast mix of local and international content. In this setting we show that the laissez-faire solution involves less than (socially optimal) maximal differentiation

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Bibliographic Info

Paper provided by Australian National University, College of Business and Economics, School of Economics in its series ANU Working Papers in Economics and Econometrics with number 2004-442.

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Length: 23 pages
Date of creation: Jul 2004
Date of revision:
Handle: RePEc:acb:cbeeco:2004-442

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  1. Steven Berry & Joel Waldfogel, 1996. "Free Entry and Social Inefficiency in Radio Broadcasting," NBER Working Papers 5528, National Bureau of Economic Research, Inc.
  2. Anderson, S. P. & Neven, D. J., 1989. "Market efficiency with combinable products," European Economic Review, Elsevier, Elsevier, vol. 33(4), pages 707-719, April.
  3. Steven T. Berry & Joel Waldfogel, 1997. "Public Radio in the United States: Does It Correct Market Failure or Cannibalize Commercial Stations?," NBER Working Papers 6057, National Bureau of Economic Research, Inc.
  4. Martin Richardson, 2004. "Cultural quotas in broadcasting II: policy," ANU Working Papers in Economics and Econometrics, Australian National University, College of Business and Economics, School of Economics 2004-443, Australian National University, College of Business and Economics, School of Economics.
  5. Keith Acheson & Christopher Maule, 1990. "Canadian Content Rules: A Time for Reconsideration," Canadian Public Policy, University of Toronto Press, vol. 16(3), pages 284-297, September.
  6. 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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Cited by:
  1. Claude Crampes & Abraham Hollander, 2008. "The regulation of audiovisual content: quotas and conflicting objectives," Journal of Regulatory Economics, Springer, Springer, vol. 34(3), pages 195-219, December.
  2. Perona, Mathieu, 2010. "How Broadcasting Quotas Harm Program Diversity," MPRA Paper 19860, University Library of Munich, Germany.
  3. Nela Filimon & Jordi López-Sintas & Carlos Padrós-Reig, 2011. "A test of Rosen’s and Adler’s theories of superstars," Journal of Cultural Economics, Springer, Springer, vol. 35(2), pages 137-161, May.
  4. Martin Richardson, 2004. "Cultural quotas in broadcasting II: policy," ANU Working Papers in Economics and Econometrics, Australian National University, College of Business and Economics, School of Economics 2004-443, Australian National University, College of Business and Economics, School of Economics.

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