Stennek, Johan () (Research Institute of Industrial Economics)
Abstract
Sports organizations, Hollywood studios and TV channels grant satellite and cable networks exclusive rights to televise their matches, movies and media contents. Exclusive distribution prevents viewers from watching attractive programs, and reduces the TV-distributors incentives to compete in prices. This paper demonstrates that exclusive distribution may also give providers of contents incentives to invest in higher quality and, as a result, force competitors to reduce their prices. Exclusive distribution may benefit all viewers, including those who are excluded
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Publisher Info
Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number
691.
Length: 44 pages Date of creation: 09 Jan 2007 Date of revision: Handle: RePEc:hhs:iuiwop:0691
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Find related papers by JEL classification: C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
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