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Canadian Content Laws and Programming Diversity

  • C. Leigh Anderson
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    By law, 50 percent of private Canadian television broadcasters' programming must be Canadian. The author proposes that the laws promote one mandate of broadcasting policy by increasing programming diversity. The quotas induce substitution out of the dominant category and into other categories, in response to differential costs and revenues between domestic and imported programming. To test the hypothesis, profit maximizing programming that would exist without the regulations is simulated.and compared to observed programming. Herfindahl indices (calculated for predicted and observed programming, across stations, and across time), indicate that under some assumptions of broadcaster behavior, diversity across stations is higher with the content laws than without.

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    Article provided by University of Toronto Press in its journal Canadian Public Policy.

    Volume (Year): 18 (1992)
    Issue (Month): 2 (June)
    Pages: 166-175

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    Handle: RePEc:cpp:issued:v:18:y:1992:i:2:p:166-175
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    1. M. S. Shedd & E. A. Wilman & R. D. Burch, 1990. "An Economic Analysis of Canadian Content Regulations and a New Proposal," Canadian Public Policy, University of Toronto Press, vol. 16(1), pages 60-72, March.
    2. B.Curtis Eaton & Richard G. Lipsey, 1972. "The Principle of Minimum Differentiation Reconsidered: Some New Developments in the Theory of Spatial Competition," Working Papers 87, Queen's University, Department of Economics.
    3. Beebe, Jack H, 1977. "Institutional Structure and Program Choices in Television Markets," The Quarterly Journal of Economics, MIT Press, vol. 91(1), pages 15-37, February.
    4. C. G. Hoskins & Stuart McFadyen, 1982. "Market Structure and Television Programming Performance in Canada and the U.K.: A Comparative Study," Canadian Public Policy, University of Toronto Press, vol. 8(3), pages 347-357, Summer.
    5. Lindsay, Cotton M, 1976. "A Theory of Government Enterprise," Journal of Political Economy, University of Chicago Press, vol. 84(5), pages 1061-77, October.
    6. Perloff, Jeffrey M & Salop, Steven C, 1985. "Equilibrium with Product Differentiation," Review of Economic Studies, Wiley Blackwell, vol. 52(1), pages 107-20, January.
    7. Keith Acheson & Christopher Maule, 1990. "Canadian Content Rules: A Time for Reconsideration," Canadian Public Policy, University of Toronto Press, vol. 16(3), pages 284-297, September.
    8. Spence, Michael, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," Review of Economic Studies, Wiley Blackwell, vol. 43(2), pages 217-35, June.
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