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Pay-per-view Television: Consequences of a Ban

Author

Listed:
  • Claus Thustrup Hansen

    (University of Copenhagen Institute of Economics)

  • Søren Kyhl

    (University of Copenhagen Institute of Economics)

Abstract

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.

Suggested Citation

  • Claus Thustrup Hansen & Søren Kyhl, 1998. "Pay-per-view Television: Consequences of a Ban," Discussion Papers 98-10, University of Copenhagen. Department of Economics.
  • Handle: RePEc:kud:kuiedp:9810
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    File URL: http://dx.doi.org/10.1016/S0167-7187(99)00044-2
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    Keywords

    pay-per-view television; commercials; regulation;

    JEL classification:

    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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