Are commercial ceilings adequate for the regulation of commercial overload on free-to-air TV channels?
Commercial ceilings not only restrict broadcasters in their decisions about commercial broadcasting time, but also affect their differentiation of program content. This study examines the welfare effects of commercial ceilings in a two-sided free-to-air TV market, taking into account welfare with respect to content differentiation. We identify a second-best commercial ceiling that maximizes welfare in the absence of enforceable program content regulation and identify the situations in which laissez faire is optimal. The deregulation of commercial broadcasting can improve welfare, even if the laissez-faire level of commercial broadcasting time is excessive.
|Date of creation:||Sep 2013|
|Date of revision:||May 2014|
|Contact details of provider:|| Postal: Universitätsstr. 14-16, 48143 Münster|
Phone: 02 51 / 83-2 29 10
Fax: 02 51 / 83-2 83 99
Web page: https://www.wiwi.uni-muenster.de/ivm/
More information through EDIRC
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.:
- Choi, Jay Pil, 2006. "Broadcast competition and advertising with free entry: Subscription vs. free-to-air," Information Economics and Policy, Elsevier, vol. 18(2), pages 181-196, June.
- Stühmeier, Torben & Wenzel, Tobias, 2012.
"Regulating advertising in the presence of public service broadcasting,"
DICE Discussion Papers
41, Düsseldorf Institute for Competition Economics (DICE), University of Düsseldorf.
- Stühmeier Torben & Wenzel Tobias, 2012. "Regulating Advertising in the Presence of Public Service Broadcasting," Review of Network Economics, De Gruyter, vol. 11(2), pages 1-23, June.
- Peitz, Martin & Valletti, Tommaso, 2004.
"Content and Advertising in the Media: Pay-TV versus Free-To-Air,"
CEPR Discussion Papers
4771, C.E.P.R. Discussion Papers.
- Peitz, Martin & Valletti, Tommaso M., 2008. "Content and advertising in the media: Pay-tv versus free-to-air," International Journal of Industrial Organization, Elsevier, vol. 26(4), pages 949-965, July.
When requesting a correction, please mention this item's handle: RePEc:mut:wpaper:19. 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: (Birgit Rueschenschmidt)
If references are entirely missing, you can add them using this form.