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Commercial Broadcasting and Local Content: Cultural Quotas, Advertising and Public Stations

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  • Martin Richardson

Abstract

This article considers two radio stations choosing combinations of local and international content to broadcast to consumers with preferences over those combinations. Station revenue derives from sales of advertising time, the demand for which depends negatively on its price and positively on the station's market share and consumers get disutility from advertising. This article derives the laissez-faire solution to this model and considers the consequences of a local content quota, an advertising cap and a non-commercial public station for broadcasting diversity and welfare with and without an externality attached to local content. Copyright 2006 Royal Economic Society.

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  • Martin Richardson, 2006. "Commercial Broadcasting and Local Content: Cultural Quotas, Advertising and Public Stations," Economic Journal, Royal Economic Society, vol. 116(511), pages 605-625, April.
  • Handle: RePEc:ecj:econjl:v:116:y:2006:i:511:p:605-625
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    Cited by:

    1. Martin Richardson & Simon Wilkie, 2013. "Faddists, enthusiasts and Canadian divas:a model of the recorded music market," ANU Working Papers in Economics and Econometrics 2013-600, Australian National University, College of Business and Economics, School of Economics.
    2. Rothbauer, Julia & Sieg, Gernot, 2014. "Are commercial ceilings appropriate for the regulation of commercial overload on free-to-air TV channels?," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100373, Verein für Socialpolitik / German Economic Association.
    3. Nathalie Moureau & Olivier Gergaud & Françoise Benhamou, 2009. "Le financement du cinéma par la télévision : une analyse économétrique des investissements des chaînes," Économie et Prévision, Programme National Persée, vol. 188(2), pages 101-112.
    4. Juan Jiménez & Javier Campos, 2010. "Modelling Competition in the Textbook Market: Some Lessons still to Learn," Journal of Industry, Competition and Trade, Springer, vol. 10(1), pages 71-85, March.
    5. Nobuko Serizawa & Shigeru Wakita, 2016. "Variety-Controlling Public Policy Under Addiction and Saturation," The Japanese Economic Review, Japanese Economic Association, vol. 67(1), pages 125-140, March.
    6. Janeba, Eckhard, 2007. "International trade and consumption network externalities," European Economic Review, Elsevier, vol. 51(4), pages 781-803, May.
    7. JINJI Naoto & TANAKA Ayumu, 2015. "How Does UNESCO's Convention on Cultural Diversity Affect Trade in Cultural Goods?," Discussion papers 15126, Research Institute of Economy, Trade and Industry (RIETI).

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