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How Broadcasting Quotas Harm Program Diversity

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  • Perona, Mathieu

Abstract

Broadcasting quotas of domestic contents are commonplace in developed countries. The core argument for them is to promote diversity by making more room for domestic content and hence foster a more diverse production. However, this intuitive reasoning ignores the trade-off between repetition (broadcasting more of the same) and new program diffusion. If each consumer cares only about a small fraction on the total contents of the program, a broadcaster confronted to a quota will find optimal to compensate for the reduction of foreign programming by increasing the number of diffusions of substitutable domestic programs. Total broadcasting time being limited, this will force the broadcaster to slash marginal (less popular) types of programming, whereby reducing program diversity. This mechanism applies both in a monopoly and an imperfectly competitive setting. It thus undermines one of the main rationales for quotas of domestic content.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 19860.

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Date of creation: Jan 2010
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Handle: RePEc:pra:mprapa:19860

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Keywords: radio; broadcasting; cultural quotas; diversity;

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References

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  1. Gabszewicz, Jean J & Laussel, Didier & Sonnac, Nathalie, 2002. " Press Advertising and the Political Differentiation of Newspapers," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(3), pages 317-34.
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  3. GABSZEWICZ, Jean J. & LAUSSEL, Didier & SONNAC, Nathalie, . "Programming and advertising competition in the broadcasting industry," CORE Discussion Papers RP -1873, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Marie Connolly & Alan Krueger, 2005. "Rockonomics: The Economics of Popular Music," Working Papers 878, Princeton University, Department of Economics, Industrial Relations Section..
  5. Martin Richardson, 2004. "Cultural quotas in broadcasting I: a model," ANU Working Papers in Economics and Econometrics 2004-442, Australian National University, College of Business and Economics, School of Economics.
  6. Esther Gal-Or & Anthony Dukes, 2003. "Minimum Differentiation in Commercial Media Markets," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(3), pages 291-325, 09.
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  8. Acheson, Keith & Maule, Christopher, 2006. "Culture in International Trade," Handbook of the Economics of Art and Culture, Elsevier.
  9. 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.
  10. Francois, Patrick & van Ypersele, Tanguy, 2002. "On the protection of cultural goods," Journal of International Economics, Elsevier, vol. 56(2), pages 359-369, March.
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Cited by:
  1. 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, vol. 35(2), pages 137-161, May.
  2. Martin Richardson & Simon Wilkie, 2013. "Faddists, enthusiasts and Canadian divas:a model of the recorded music market," ANU Working Papers in Economics and Econometrics 2013-600, Australian National University, College of Business and Economics, School of Economics.

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