Optimal Divisionalization of Cable Television Networks
AbstractIn this article, a condition for the optimal division’s number is presented, for a market with two cable operators who offer a network service. First, a reason is presented to justify a partial covering of the national market from the cable operators. Second, a problem of moral hazard is revealed, which is able to appear through the implementation of franchising schemes with independent divisions.
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Bibliographic InfoPaper provided by EconWPA in its series Industrial Organization with number 0303013.
Length: 25 pages
Date of creation: 30 Mar 2003
Date of revision: 17 Apr 2003
Note: Type of Document - Tex/WordPerfect/Handwritten; prepared on IBM PC - PC-TEX/UNIX Sparc TeX; to print on HP/PostScript/Franciscan monk; pages: 25 ; figures: included/request from author/draw your own
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Optimal Divisionalization; Franchising; Vertical Integration.;
Find related papers by JEL classification:
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
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