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Convergence and the Potential Ban on Interactive Product Placement in Germany

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Author Info
Christian Jansen (Humboldt-University of Berlin)

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Abstract

This paper addresses the economic impact of German advertising regulations. The digital convergence of media provides a starting point for the analysis. This convergence makes technically feasible “interactive product placement” (IPP), the integration of interactively purchasable products in television programs and movies for the purpose of advertising. Such advertising could conceivably outstrip traditional product placement as a source of revenues for the film industry. Moreover, IPP could provide valuable incentives to create new audiovisual hardware and software. As product placement is generally banned in Germany, we critically review relevant regulations. Additionally, a simple model is developed that allows for a welfare economic approach to the analysis of an IPP ban.

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File URL: http://129.3.20.41/eps/le/papers/0302/0302002.pdf
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Publisher Info
Paper provided by EconWPA in its series Law and Economics with number 0302002.

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Length: 36 pages
Date of creation: 19 Feb 2003
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Handle: RePEc:wpa:wuwple:0302002

Note: Type of Document - pdf; prepared on PC; pages: 36
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Web page: http://129.3.20.41

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Related research
Keywords: Advertising regulations German film industry interactive product placement law and economics

Find related papers by JEL classification:
L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
M37 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Advertising

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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  1. Brown, Allan & Cave, Martin, 1992. "The Economics of Television Regulation: A Survey with Application to Australia," The Economic Record, The Economic Society of Australia, vol. 68(203), pages 377-94, December.
  2. Wright, Donald J, 1994. "Television Advertising Regulation and Program Quality," The Economic Record, The Economic Society of Australia, vol. 70(211), pages 361-67, December.
  3. De Vany, A. & Walls, W.D., 1999. "Uncertainty in the Movies: Does Star Power Reduce the Terror of the Box Office?," Papers 98-99-10, California Irvine - School of Social Sciences.
  4. Grossman, Gene M & Shapiro, Carl, 1984. "Informative Advertising with Differentiated Products," Review of Economic Studies, Blackwell Publishing, vol. 51(1), pages 63-81, January. [Downloadable!] (restricted)
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  6. Tore Nilssen & Lars Sorgard, . "TV Advertising, Programming Investments, and Product-Market Oligopoly," University of California Santa Barbara - Department of Economics 6-00, California Santa Barbara - Department of Economics. [Downloadable!]
    Other versions:
  7. Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August. [Downloadable!] (restricted)
  8. Stegeman, Mark, 1991. "Advertising in Competitive Markets," American Economic Review, American Economic Association, vol. 81(1), pages 210-23, March. [Downloadable!] (restricted)
  9. Massimo Motta, 1996. "Advertising Bans," Economics Working Papers 205, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 1997. [Downloadable!]
    Other versions:
  10. Milgrom, Paul & Roberts, John, 1986. "Price and Advertising Signals of Product Quality," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 796-821, August. [Downloadable!] (restricted)
    Other versions:
  11. Schneider, Lynne & Klein, Benjamin & Murphy, Kevin M, 1981. "Governmental Regulation of Cigarette Health Information," Journal of Law & Economics, University of Chicago Press, vol. 24(3), pages 575-612, December.
    Other versions:
  12. Gabszewicz, J.J. & Laussel, D. & Sonnac, N., 2000. "TV-Broadcasting Competition and Advertising," Papers 2000/6, Catholique de Louvain - Center for Operations Research and Economics.
  13. Simon P. Anderson & Stephen Coate, 2000. "Market Provision of Public Goods: The Case of Broadcasting," NBER Working Papers 7513, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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