Monopoly Practises and Competitive Behaviour in the French Satellite Pay-TV Market
This Paper uses monthly data from a differentiated market dominated by a duopoly to analyse the nature of interactions between competitor firms. The incumbent, Canal Satellite, and the entrant, TPS, have dominated the French satellite pay-TV market, characterized by a monopoly until the end of 1997. This Paper investigates the effects of the entry and tests for collusive behaviour by means of non-nested methods in this duopoly with differentiated products. The main findings reject collusive behaviours in favour of Stackelberg competition with the incumbent as the leader. A preliminary comparison with the UK Satellite pay-TV market characterized by a monopoly indicates that prices are substantially lower in France. In view of our results, we argue that the difference can be explained by more competition between firms in the French case.
|Date of creation:||Jan 2004|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
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.:
- Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-33, March.
- Robert N. Rubinovitz, 1993. "Market Power and Price Increases for Basic Cable Service Since Deregulation," RAND Journal of Economics, The RAND Corporation, vol. 24(1), pages 1-18, Spring.
- Simon P. Anderson & Stephen Coate, 2000. "Market Provision of Public Goods: The Case of Broadcasting," NBER Working Papers 7513, National Bureau of Economic Research, Inc.
- Tasneem Chipty, 2001. "Vertical Integration, Market Foreclosure, and Consumer Welfare in the Cable Television Industry," American Economic Review, American Economic Association, vol. 91(3), pages 428-453, June.
- Author One David Harbord & Author Two Marco Ottaviani, 2002. "Contracts and Competition in the Pay-TV Market," Industrial Organization 0203005, EconWPA.
- Gasmi, Farid & Laffont, Jean-Jacques & Vuong, Quang, 1992.
"Econometric Analysis of Collusive Behavior in a Soft Drink Market,"
IDEI Working Papers
16, Institut d'Économie Industrielle (IDEI), Toulouse.
- Gasmi, F & Laffont, J J & Vuong, Q, 1992. "Econometric Analysis of Collusive Behavior in a Soft-Drink Market," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 1(2), pages 277-311, Summer.
- Jean Gabszewicz & Didier Laussel & Nathalie Sonnac, 1999.
"TV-Broadcasting Competition and Advertising,"
99-72, Centre de Recherche en Economie et Statistique.
- Waterman, David & Weiss, Andrew A., 1996. "The effects of vertical integration between cable television systems and pay cable networks," Journal of Econometrics, Elsevier, vol. 72(1-2), pages 357-395.
- Armstrong, Mark, 1999. "Competition in the Pay-TV Market," Journal of the Japanese and International Economies, Elsevier, vol. 13(4), pages 257-280, December.
When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:4174. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()The email address of this maintainer does not seem to be valid anymore. Please ask to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.