IDEAS home Printed from https://ideas.repec.org/p/uow/depec1/wp11-14.html
   My bibliography  Save this paper

Optimal Control of Broadcasting Spectrum with a Variety-Reception Tradeoff and Consumers’ Income Sensitivity

Author

Listed:

Abstract

A socially desirable number of royalties-paying users of a state-owned broadcasting spectrum is derived within an optimal control framework where the adjustment of the number of users to above-normal profits is adversely affected by sunk costs. The optimal control takes into account the tradeoff between the benefits from higher variety and royalties’ revenues and the costs of the intensified interferences associated with entry. It also considers the positive information-dissemination effect and the negative effort-diversion effect of broadcasts on aggregate income. The broadcasting industry’s optimal steady state is identified and its stability is analyzed.

Suggested Citation

  • Amnon Levy & Benoit Freyens, 2011. "Optimal Control of Broadcasting Spectrum with a Variety-Reception Tradeoff and Consumers’ Income Sensitivity," Economics Working Papers wp11-14, School of Economics, University of Wollongong, NSW, Australia.
    • Handle: RePEc:uow:depec1:wp11-14
    as

    Download full text from publisher

    File URL: http://www.uow.edu.au/content/groups/public/@web/@commerce/@econ/documents/doc/uow101889.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jérôme Adda & Marco Ottaviani & Paul Seabright, 2005. "The transition to digital television [‘Balladurette and Juppette: A discrete analysis of scrapping subsidies’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 20(41), pages 160-209.
    2. Massimo Motta & Michele Polo, 1997. "Concentration and public policies in the broadcasting industry: the future of television," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 12(25), pages 294-334.
    3. Thomas W. Hazlett, 2008. "Optimal Abolition of FCC Spectrum Allocation," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 103-128, Winter.
    4. Webbink, Douglas W, 1973. "Regulation, Profits and Entry in the Television Broadcasting Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 21(2), pages 167-176, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amnon Levy & Michael R. Caputo & Benoît Pierre Freyens, 2013. "Royalties, Entry and Spectrum Allocation to Broadcasting," Economics Working Papers wp13-02, School of Economics, University of Wollongong, NSW, Australia.
    2. Oliver Budzinski & Katharina Wacker, 2007. "The Prohibition Of The Proposed Springer-Prosiebensat.1 Merger: How Much Economics In German Merger Control?," Journal of Competition Law and Economics, Oxford University Press, vol. 3(2), pages 281-306.
    3. Julia Rothbauer & Gernot Sieg, 2013. "Public Service Broadcasting of Sport, Shows, and News to Mitigate Rational Ignorance," Journal of Media Economics, Taylor & Francis Journals, vol. 26(1), pages 21-40, March.
    4. Liu, Chorng-Jian & Chuang, Yi-Fei, 2015. "From Sluggish to Brisk: An analysis of Taiwan׳s cable TV digitalization policy," Telecommunications Policy, Elsevier, vol. 39(11), pages 980-995.
    5. Fabrice Collard & Omar Licandro, 2020. "The neoclassical model and the welfare costs of selection," Discussion Papers 2020/03, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
    6. Elizabeth Hoffman & Matthew L. Spitzer, 2011. "The Enduring Power of Coase," Journal of Law and Economics, University of Chicago Press, vol. 54(S4), pages 63-76.
    7. Ghoneim, Ahmed Farouk, 2004. "Competition, cultural variety and global governance: The case of the Egyptian audiovisual system," HWWA Reports 246, Hamburg Institute of International Economics (HWWA).
    8. Hans Jarle Kind & Tore Nilssen & Lars Sørgard, 2007. "Competition for Viewers and Advertisers in a TV Oligopoly," Journal of Media Economics, Taylor & Francis Journals, vol. 20(3), pages 211-233.
    9. Ghoneim, Ahmed Farouk, 2004. "Competition, Cultural Variety and Global Governance: The Case of the Egyptian Audiovisual System," Report Series 26109, Hamburg Institute of International Economics.
    10. Benoît Pierre Freyens & Chris Jones, 2014. "Efficient Allocation of Radio Spectrum," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 16(1), pages 1-23, February.
    11. Simon P. Anderson & Stephen Coate, 2005. "Market Provision of Broadcasting: A Welfare Analysis," Review of Economic Studies, Oxford University Press, vol. 72(4), pages 947-972.
    12. Paul Fenn & David Paton & Leighton Vaughan Williams, 2009. "Productivity growth and funding of public service broadcasting," Public Choice, Springer, vol. 141(3), pages 335-349, December.
    13. Anderson, Simon P. & Gabszewicz, Jean J., 2006. "The Media and Advertising: A Tale of Two-Sided Markets," Handbook of the Economics of Art and Culture, in: V.A. Ginsburgh & D. Throsby (ed.), Handbook of the Economics of Art and Culture, edition 1, volume 1, chapter 18, pages 567-614, Elsevier.
    14. Andreano, Simona & Iapadre, Lelio, 2003. "Audiovisual policies and international trade: The case of Italy," HWWA Reports 234, Hamburg Institute of International Economics (HWWA).
    15. Nilssen, Tore & Sorgard, Lars, 2002. "A public firm challenged by entry: duplication or diversity?," Regional Science and Urban Economics, Elsevier, vol. 32(2), pages 259-274, March.
    16. Machiel Dijk & Richard Nahuis & Daniel Waagmeester, 2006. "Does Public Service Broadcasting Serve The Public? The Future of Television in the Changing Media Landscape," De Economist, Springer, vol. 154(2), pages 251-276, June.
    17. Teckshawer Tom, 2023. "5G Impacts, Internet of Things (IoT) and Businesses in Developing Countries," Technium Social Sciences Journal, Technium Science, vol. 46(1), pages 87-104, August.
    18. Andreano, Simona & Iapadre, Lelio, 2003. "Audiovisual Policies and International Trade: The Case of Italy," Report Series 26064, Hamburg Institute of International Economics.
    19. Kasuga, Norihiro & Shishikura, Manabu, 2006. "Determinants of profit in the broadcasting industry: Evidence from Japanese micro data," Information Economics and Policy, Elsevier, vol. 18(2), pages 216-228, June.
    20. Hasbi, Maude, 2015. "Universal service obligations and public payphone use: Is regulation still necessary in the era of mobile telephony?," Telecommunications Policy, Elsevier, vol. 39(5), pages 421-435.

    More about this item

    Keywords

    Economics; Optimal Control; Spectrum; OTA Broadcasts; Variety; Interferences; Royalties;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uow:depec1:wp11-14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Siminski (email available below). General contact details of provider: https://edirc.repec.org/data/deuowau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.