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Canadian Content Laws and Programming Diversity

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  • C. Leigh Anderson

Abstract

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.

Suggested Citation

  • C. Leigh Anderson, 1992. "Canadian Content Laws and Programming Diversity," Canadian Public Policy, University of Toronto Press, vol. 18(2), pages 166-175, June.
  • Handle: RePEc:cpp:issued:v:18:y:1992:i:2:p:166-175
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    References listed on IDEAS

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    1. Michael Spence, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," Review of Economic Studies, Oxford University Press, vol. 43(2), pages 217-235.
    2. B. Curtis Eaton & Richard G. Lipsey, 1975. "The Principle of Minimum Differentiation Reconsidered: Some New Developments in the Theory of Spatial Competition," Review of Economic Studies, Oxford University Press, vol. 42(1), pages 27-49.
    3. Jeffrey M. Perloff & Steven C. Salop, 1985. "Equilibrium with Product Differentiation," Review of Economic Studies, Oxford University Press, vol. 52(1), pages 107-120.
    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. 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.
    6. Lindsay, Cotton M, 1976. "A Theory of Government Enterprise," Journal of Political Economy, University of Chicago Press, vol. 84(5), pages 1061-1077, October.
    7. Peter O. Steiner, 1952. "Program Patterns and Preferences, and the Workability of Competition in Radio Broadcasting," The Quarterly Journal of Economics, Oxford University Press, vol. 66(2), pages 194-223.
    8. Jack H. Beebe, 1977. "Institutional Structure and Program Choices in Television Markets," The Quarterly Journal of Economics, Oxford University Press, vol. 91(1), pages 15-37.
    9. 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.
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    Cited by:

    1. Nilssen, Tore & Sorgard, Lars, 2002. "A public firm challenged by entry: duplication or diversity?," Regional Science and Urban Economics, Elsevier, vol. 32(2), pages 259-274, March.
    2. C. Leigh Anderson & Gene Swimmer & Wing Suen, 1997. "An empirical analysis of viewer demand for U.S. programming and the effect of Canadian broadcasting regulations," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 16(4), pages 525-540.

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