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TV-Broadcasting Competition and Advertising

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Author Info

  • Jean Gabszewicz

    (Crest)

  • Didier Laussel

    (Crest)

  • Nathalie Sonnac

    (Crest)

Abstract

We analyse the rivalry between two TV-channels competing both on the market for audience and the market for advertising. We identify the nature of TV-programs emerging from this competition, and the quantity of advertising that TV-viewers will have to attend at equilibrium. Finally, we examine how a government's regulation of this quantity will affect programs' selection by the channels.

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Bibliographic Info

Paper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 99-72.

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Date of creation: 1999
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Handle: RePEc:crs:wpaper:99-72

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References

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  1. d'Aspremont, C & Gabszewicz, Jean Jaskold & Thisse, J-F, 1979. "On Hotelling's "Stability in Competition"," Econometrica, Econometric Society, vol. 47(5), pages 1145-50, September.
  2. Jaskold Gabszewicz, J. & Thisse, J. -F., 1979. "Price competition, quality and income disparities," Journal of Economic Theory, Elsevier, vol. 20(3), pages 340-359, June.
  3. GABSZEWICZ, Jean J. & LAUSSEL, Didier & SONNAC, Nathalie, 2000. "Does press advertising foster the “pensée unique”?," CORE Discussion Papers 2000008, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
  5. Spence, A Michael & Owen, Bruce, 1977. "Television Programming, Monopolistic Competition, and Welfare," The Quarterly Journal of Economics, MIT Press, vol. 91(1), pages 103-26, February.
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Citations

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Cited by:
  1. Brown, Keith & Alexander, Peter J., 2005. "Market structure, viewer welfare, and advertising rates in local broadcast television markets," Economics Letters, Elsevier, vol. 86(3), pages 331-337, March.
  2. 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.
  3. Feng Zhu, 2008. "Ad-sponsored Business Models and Compatibility Incentives of Social Networks," Working Papers 08-20, NET Institute, revised Sep 2008.
  4. Böhme, Enrico & Müller, Christopher, 2010. "Comparing Monopoly and Duopoly on a Two-Sided Market without Product Differentiation," MPRA Paper 23568, University Library of Munich, Germany.
  5. Crampes, Claude & Haritchabalet, Carole & Jullien, Bruno, 2006. "Advertising, Competition and Entry in Media Industries," IDEI Working Papers 374, Institut d'Économie Industrielle (IDEI), Toulouse.
  6. 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.
  7. Nilssen,T. & Sorgard,L., 2001. "The TV industry : advertising and programming," Memorandum 18/2001, Oslo University, Department of Economics.
  8. Simon P., ANDERSON & Jean J., GABSZEWICZ, 2005. "The media and advertising : a table of two-sided markets," Discussion Papers (ECON - Département des Sciences Economiques) 2005060, Université catholique de Louvain, Département des Sciences Economiques.
  9. Simon P. Anderson & Stephen Coate, 2003. "Market Provision of Broadcasting: A Welfare Analysis," Virginia Economics Online Papers 358, University of Virginia, Department of Economics.
  10. Mangani, Andrea, 2003. "Profit and audience maximization in broadcasting markets," Information Economics and Policy, Elsevier, vol. 15(3), pages 305-315, September.
  11. Nilssen,T. & Sorgard,L., 2000. "Strategic informative advertising in a TV-advertising duopoly," Memorandum 17/2000, Oslo University, Department of Economics.
  12. Cincera, Michele & Noury, Abdul, 2004. "Monopoly Practises and Competitive Behaviour in the French Satellite Pay-TV Market," CEPR Discussion Papers 4174, C.E.P.R. Discussion Papers.
  13. Christian Jansen, 2003. "Convergence and the Potential Ban on Interactive Product Placement in Germany," Law and Economics 0302002, EconWPA.
  14. Martin Richardson, 2004. "Cultural quotas in broadcasting II: policy," ANU Working Papers in Economics and Econometrics 2004-443, Australian National University, College of Business and Economics, School of Economics.
  15. Nilssen,T. & Sorgard,L., 2001. "Who are the advertisers?," Memorandum 19/2001, Oslo University, Department of Economics.

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