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Coordination, Differentiation, and the Timing of Radio Commercials

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  • Andrew Sweeting

Abstract

"This paper examines the timing of commercial breaks by contemporary music radio stations. A simple model shows that stations may prefer, all else equal, to choose the same times (coordination) or different times (differentiation) for breaks depending on how listeners behave. It also shows that how much commercials overlap in Nash equilibrium should vary in different ways with observable market characteristics, such as the number of stations, depending on whether stations prefer to coordinate or differentiate. Panel data on the timing of commercials by 1,094 stations provide consistent support for the hypothesis that stations prefer to coordinate on timing". Copyright 2006, The Author(s) Journal Compilation (c) 2006 Blackwell Publishing.

Suggested Citation

  • Andrew Sweeting, 2006. "Coordination, Differentiation, and the Timing of Radio Commercials," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 15(4), pages 909-942, December.
  • Handle: RePEc:bla:jemstr:v:15:y:2006:i:4:p:909-942
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    Cited by:

    1. Zafar, Basit, 2011. "An experimental investigation of why individuals conform," European Economic Review, Elsevier, vol. 55(6), pages 774-798, August.
    2. Shurchkov, Olga, 2016. "Public announcements and coordination in dynamic global games: Experimental evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 61(C), pages 20-30.
    3. An-Hsiang Liu & Ralph Siebert & Christine Zulehner, 2013. "The Impact of Entry Regulation on Total Welfare: A Policy Experiment," CESifo Working Paper Series 4291, CESifo Group Munich.
    4. Andrew Sweeting, 2009. "The strategic timing incentives of commercial radio stations: An empirical analysis using multiple equilibria," RAND Journal of Economics, RAND Corporation, vol. 40(4), pages 710-742.
    5. Maria Petrova, 2009. "Newspapers and Parties: How Advertising Revenues Created an Independent Press," Working Papers w0131, Center for Economic and Financial Research (CEFIR).
    6. Andrew Sweeting, 2005. "Coordination Games, Multiple Equilibria and the Timing of Radio Commercials," 2005 Meeting Papers 490, Society for Economic Dynamics.

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