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Advertising Rates, Audience Composition, and Competition in the Network Television Industry

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  • Goettler, R.
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    Abstract

    We discuss the market for commercial spots on network television and estimate the relationship between ratings and advertisement revenue. Then we discuss the model of viewer choice and scheduling strategies suggested by the model and we compute best response schedules and Nash equilibria of the scheduling game and analyze the strategic behavior of the television networks under various specifications of the payoff function.

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    Bibliographic Info

    Paper provided by Carnegie Mellon University, Tepper School of Business in its series GSIA Working Papers with number 1999-28.

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    Length: 32 pages
    Date of creation: 1999
    Date of revision:
    Handle: RePEc:cmu:gsiawp:1999-28

    Contact details of provider:
    Postal: Tepper School of Business, Carnegie Mellon University, 5000 Forbes Avenue, Pittsburgh, PA 15213-3890
    Web page: http://www.tepper.cmu.edu/

    Order Information:
    Web: http://student-3k.tepper.cmu.edu/gsiadoc/GSIA_WP.asp

    Related research

    Keywords: ADVERTISING ; TELEVISION;

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    Cited by:
    1. Anderson, Simon P & Gabszewicz, Jean Jaskold, 2005. "The Media and Advertising: A Tale of Two-Sided Markets," CEPR Discussion Papers 5223, C.E.P.R. Discussion Papers.
    2. Gomes, Orlando, 2006. "The dynamics of television advertising with boundedly rational consumers," MPRA Paper 2847, University Library of Munich, Germany.
    3. Pepall, Lynne M. & Richards, Daniel J., 2006. "Advertising and bidding for television rights," Economics Letters, Elsevier, vol. 90(2), pages 237-241, February.
    4. Nilssen,T. & Sorgard,L., 2001. "The TV industry : advertising and programming," Memorandum 18/2001, Oslo University, Department of Economics.
    5. Leonard I. Nakamura, 2005. "Advertising, intangible assets, and unpriced entertainment," Working Papers 05-11, Federal Reserve Bank of Philadelphia.
    6. Itai Sher & Jeremy T. Fox & Kyoo il Kim & Patrick Bajari, 2011. "Partial Identification of Heterogeneity in Preference Orderings Over Discrete Choices," NBER Working Papers 17346, National Bureau of Economic Research, Inc.
    7. Ronald Goettler & Ron Shachar, 2000. "Estimating Product Characteristics and Spatial Competition in the Network Television Industry," Econometric Society World Congress 2000 Contributed Papers 1691, Econometric Society.
    8. Nilssen, Tore & Sørgard, Lars, 2000. "TV Advertising, Program Quality, and Product-Market Oligopoly," Competition Policy Center, Working Paper Series qt2zp943hj, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.

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