The Strategic Timing Incentives of Commercial Radio Stations: An Empirical Analysis Using Multiple Equilibria
Commercial radio stations and advertisers have potentially conflicting interests about when commercial breaks should be played. This paper estimates an incomplete information timing game to examine stations' equilibrium timing incentives. It shows how identification can be aided by the existence of multiple equilibria when appropriate data are available. It finds that stations want to play their commercials at the same time, suggesting that mechanisms exist which align the incentives of stations with the interests of advertisers. It also shows that coordination incentives are much stronger during drivetime hours, when more listeners switch stations, and in smaller markets.
|Date of creation:||Nov 2008|
|Date of revision:|
|Publication status:||published as The strategic timing incentives of commercial radio stations: An empirical analysis using multiple equilibria Andrew Sweeting Article first published online: 12 OCT 2009 DOI: 10.1111/j.1756-2171.2009.00086.x © 2009, RAND Issue The RAND Journal of Economics The RAND Journal of Economics Volume 40, Issue 4, pages 710–742, Winter 2009|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
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.:
- Victor Aguirregabiria & Pedro Mira, 2007.
"Sequential Estimation of Dynamic Discrete Games,"
Econometric Society, vol. 75(1), pages 1-53, 01.
- repec:rje:randje:v:37:y:2006:3:p:738-761 is not listed on IDEAS
- Elie Tamer & Federico Ciliberto, 2004.
"Market Structure and Multiple Equilibria in Airline Markets,"
Econometric Society 2004 North American Winter Meetings
517, Econometric Society.
- Federico Ciliberto & Elie Tamer, 2009. "Market Structure and Multiple Equilibria in Airline Markets," Econometrica, Econometric Society, vol. 77(6), pages 1791-1828, November.
- Ciliberto, Federico & Tamer, Elie, 2009. "Market structure and multiple equilibria in airline markets," MPRA Paper 38635, University Library of Munich, Germany.
- Elie Tamer & Federico Ciliberto, 2004. "Market Structure and Multiple Equilibria in Airline Markets," 2004 Meeting Papers 52, Society for Economic Dynamics.
- Bresnahan, Timothy F. & Reiss, Peter C., 1991. "Empirical models of discrete games," Journal of Econometrics, Elsevier, vol. 48(1-2), pages 57-81.
- A. Pakes & J. Porter & Kate Ho & Joy Ishii, 2015.
"Moment Inequalities and Their Application,"
Econometric Society, vol. 83, pages 315-334, 01.
- Gil S. Epstein, 1998. "Network Competition and the Timing of Commercials," Management Science, INFORMS, vol. 44(3), pages 370-387, March.
- Elie Tamer, 2003. "Incomplete Simultaneous Discrete Response Model with Multiple Equilibria," Review of Economic Studies, Oxford University Press, vol. 70(1), pages 147-165.
- Hanfeng Chen & Jiahua Chen & John D. Kalbfleisch, 2004. "Testing for a finite mixture model with two components," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 66(1), pages 95-115.
- Hanfeng Chen & Jiahua Chen & John D. Kalbfleisch, 2001. "A modified likelihood ratio test for homogeneity in finite mixture models," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 63(1), pages 19-29.
- Martin Pesendorfer & Philipp Schmidt-Dengler, 2008. "Asymptotic Least Squares Estimators for Dynamic Games -super-1," Review of Economic Studies, Oxford University Press, vol. 75(3), pages 901-928.
- Bresnahan, T.F & Reiss, P.C., 1989.
"Entry And Competition In Concentrated Markets,"
151, Stanford - Studies in Industry Economics.
- Andrew Sweeting, 2006. "Coordination, Differentiation, and the Timing of Radio Commercials," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 15(4), pages 909-942, December.
- Ellickson, Paul & Misra, Sanjog, 2006.
"Supermarket Pricing Strategies,"
06-02, Duke University, Department of Economics.
- Angelique Augereau & Shane Greenstein & Marc Rysman, 2006. "Coordination versus differentiation in a standards war: 56K modems," RAND Journal of Economics, RAND Corporation, vol. 37(4), pages 887-909, December.
- Daniel A. Ackerberg & Gautam Gowrisankaran, 2006.
"Quantifying Equilibrium Network Externalities in the ACH Banking Industry,"
NBER Working Papers
12488, National Bureau of Economic Research, Inc.
- Daniel A. Ackerberg & Gautam Gowrisankaran, 2006. "Quantifying equilibrium network externalities in the ACH banking industry," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 738-761, 09.
- Gautam Gowrisankaran & Daniel A. Ackerberg, 2003. "Quantifying Equilibrium Network Externalities in the ACH Banking Industry," Working Papers 03-06, NET Institute, revised Sep 2003.
- V. Joseph Hotz & Robert A. Miller, 1993. "Conditional Choice Probabilities and the Estimation of Dynamic Models," Review of Economic Studies, Oxford University Press, vol. 60(3), pages 497-529.
- Patrick Bajari & Han Hong & Stephen Ryan, 2004.
"Identification and Estimation of Discrete Games of Complete Information,"
NBER Technical Working Papers
0301, National Bureau of Economic Research, Inc.
- Stephen Ryan & Patrick Bajari & Han Hong, 2005. "Identification and Estimation of Discrete Games of Complete Information," Computing in Economics and Finance 2005 53, Society for Computational Economics.
- Rust, John, 1987. "Optimal Replacement of GMC Bus Engines: An Empirical Model of Harold Zurcher," Econometrica, Econometric Society, vol. 55(5), pages 999-1033, September.
- Bajari, Patrick & Hong, Han & Krainer, John & Nekipelov, Denis, 2010.
"Estimating Static Models of Strategic Interactions,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 28(4), pages 469-482.
- Rysman, Marc & Greenstein, Shane, 2005. "Testing for agglomeration and dispersion," Economics Letters, Elsevier, vol. 86(3), pages 405-411, March.
- repec:rje:randje:v:37:y:2006:3:p:619-640 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:14506. 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: ()
If references are entirely missing, you can add them using this form.