Are commercial ceilings adequate for the regulation of commercial overload on free-to-air TV channels?
AbstractCommercial ceilings not only restrict broadcasters in their decisions about commercial broadcasting time, but also affect their differentiation of program content. This study examines the welfare effects of commercial ceilings in a two-sided free-to-air TV market, taking into account welfare with respect to content differentiation. We identify a second-best commercial ceiling that maximizes welfare in the absence of enforceable program content regulation and identify the situations in which laissez faire is optimal. The deregulation of commercial broadcasting can improve welfare, even if the laissez-faire level of commercial broadcasting time is excessive.
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Bibliographic InfoPaper provided by Institute of Transport Economics, University of Muenster in its series Working Papers with number 19.
Length: 20 pages
Date of creation: Sep 2013
Date of revision: May 2014
advertising regulation; content differentiation; welfare;
Find related papers by JEL classification:
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
- M38 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Government Policy and Regulation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-11-16 (All new papers)
- NEP-CUL-2013-11-16 (Cultural Economics)
- NEP-MKT-2013-11-16 (Marketing)
- NEP-REG-2013-11-16 (Regulation)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peitz, Martin & Valletti, Tommaso M., 2008.
"Content and advertising in the media: Pay-tv versus free-to-air,"
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- Stühmeier Torben & Wenzel Tobias, 2012.
"Regulating Advertising in the Presence of Public Service Broadcasting,"
Review of Network Economics,
De Gruyter, vol. 11(2), pages 1-23, June.
- Stühmeier, Torben & Wenzel, Tobias, 2012. "Regulating advertising in the presence of public service broadcasting," DICE Discussion Papers 41, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
- Choi, Jay Pil, 2006. "Broadcast competition and advertising with free entry: Subscription vs. free-to-air," Information Economics and Policy, Elsevier, vol. 18(2), pages 181-196, June.
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