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Content and Advertising: TV Media Competition in a Mixed-duopoly Market

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  • Pan, Hui

Abstract

This paper investigates the advertising intensity and channel content in a mixed-duopoly market. We find that there is less content difference in a mixed-duopoly market than in a private-duopoly market. The private channel is worse off when it competes against a state channel since the private channel faces more intense competition in content and viewing price. We also extend our analysis to social welfare investigation and policy implications. We show that the mixed-duopoly market is socially preferred to the private-duopoly market. It is also found that government intervention by using state channel only cannot reach social optimum.

Suggested Citation

  • Pan, Hui, 2009. "Content and Advertising: TV Media Competition in a Mixed-duopoly Market," The Journal of Economic Asymmetries, Elsevier, vol. 6(2), pages 137-154.
    • Handle: RePEc:eee:joecas:v:6:y:2009:i:2:p:137-154
    DOI: 10.1016/j.jeca.2009.02.010
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    References listed on IDEAS

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    1. Mason, Robin & Weeds, Helen, 2013. "Merger policy, entry, and entrepreneurship," European Economic Review, Elsevier, vol. 57(C), pages 23-38.
    2. Hans Jarle Kind & Tore Nilssen & Lars Sørgard, 2007. "Competition for Viewers and Advertisers in a TV Oligopoly," Journal of Media Economics, Taylor & Francis Journals, vol. 20(3), pages 211-233.
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    Keywords

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    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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