Network Competition and the Timing of Commercials
In a market with a small number of networks, the timing of the commercial breaks is a very important factor in determining the number of viewers facing a channel. Using a theoretical model and statistical analysis with empirical data from the four networks in the United States, we analyze the equilibrium achieved in this network monopolistic competition. Among other things, it is shown theoretically and empirically that in equilibrium all networks broadcast commercial breaks at the same time. As the ability to coordinate is not always possible, it is shown that, as the program progresses, the level of coordination decreases.
Volume (Year): 44 (1998)
Issue (Month): 3 (March)
|Contact details of provider:|| Postal: 7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA|
Web page: http://www.informs.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Heien, Dale & Durham, Cathy, 1991. "A Test of the Habit Formation Hypothesis Using Household Data," The Review of Economics and Statistics, MIT Press, vol. 73(2), pages 189-199, May.
- J. Miguel Villas-Boas, 1993. "Predicting Advertising Pulsing Policies in an Oligopoly: A Model and Empirical Test," Marketing Science, INFORMS, vol. 12(1), pages 88-102.
- Klemperer, Paul D, 1987. "Entry Deterrence in Markets with Consumer Switching Costs," Economic Journal, Royal Economic Society, vol. 97(388a), pages 99-117, Supplemen.