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Pay-per-view Television: Consequences of a Ban

  • Claus Thustrup Hansen

    (University of Copenhagen Institute of Economics)

  • Søren Kyhl

    (University of Copenhagen Institute of Economics)

In the future, a ban of pay-per-view broadcasting will arise on certain events included on national lists in each EU country as put forward in the new "Television Without Frontiers" Directive from the 16th of April, 1997. This paper analyses theoretically the consequences of such ban when the alternative is financing the events purely by TV-commercials. Results on economic efficiency does not provide much reason for a ban. However, a ban increases consumer surplus which may support a ban for distributional reasons.

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Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 98-10.

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Length: 22 pages + tables
Date of creation: Jun 1998
Date of revision:
Publication status: Published in: Int. Journal of Industrial Org. 19(3-4) 2001, 589-609
Handle: RePEc:kud:kuiedp:9810
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