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L'impact de la suppression de la publicité sur les chaînes de télévision publiques

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  • Marc Bourreau
  • Christian Grece

Abstract

In this paper, we propose a model of competition between a private television channel, financed by advertising, and a public channel, financed by advertising and a transfer of public funds. In this framework, we study the impact of an advertising quota imposed on the public channel on the two channels’ investments and on their market shares. We show that the lower the advertising quota, the lower the investments of the two channels, and the lower the audience and the profit of the private channel. We also show that, compared to a benchmark situation without any quota, the introduction of an advertising quota can be to the detriment of the private channel and reduce the viewers’ surplus if set at a level too low. Classification JEL : L82 ; L5.

Suggested Citation

  • Marc Bourreau & Christian Grece, 2011. "L'impact de la suppression de la publicité sur les chaînes de télévision publiques," Revue économique, Presses de Sciences-Po, vol. 62(5), pages 781-811.
  • Handle: RePEc:cai:recosp:reco_625_0781
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    Cited by:

    1. Lapo Filistrucchi & Andrea Mangani & Luigi Luini, 2012. "Banning Ads from Prime-Time State TV: Lessons from France," Working Papers 12-23, NET Institute.

    More about this item

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy

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