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How Broadcasting Quotas Harm Program Diversity

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  • Perona, Mathieu

Abstract

Broadcasting quotas of domestic contents are commonplace in developed countries. The core argument for them is to promote diversity by making more room for domestic content and hence foster a more diverse production. However, this intuitive reasoning ignores the trade-off between repetition (broadcasting more of the same) and new program diffusion. If each consumer cares only about a small fraction on the total contents of the program, a broadcaster confronted to a quota will find optimal to compensate for the reduction of foreign programming by increasing the number of diffusions of substitutable domestic programs. Total broadcasting time being limited, this will force the broadcaster to slash marginal (less popular) types of programming, whereby reducing program diversity. This mechanism applies both in a monopoly and an imperfectly competitive setting. It thus undermines one of the main rationales for quotas of domestic content.

Suggested Citation

  • Perona, Mathieu, 2010. "How Broadcasting Quotas Harm Program Diversity," MPRA Paper 19860, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:19860
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    File URL: https://mpra.ub.uni-muenchen.de/22549/2/MPRA_paper_22549.pdf
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    References listed on IDEAS

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    6. Gabszewicz, Jean J & Laussel, Didier & Sonnac, Nathalie, 2002. " Press Advertising and the Political Differentiation of Newspapers," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(3), pages 317-334.
    7. Connolly, Marie & Krueger, Alan B., 2006. "Rockonomics: The Economics of Popular Music," Handbook of the Economics of Art and Culture, Elsevier.
    8. Martin Richardson, 2004. "Cultural quotas in broadcasting II: policy," ANU Working Papers in Economics and Econometrics 2004-443, Australian National University, College of Business and Economics, School of Economics.
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    Cited by:

    1. Martin Richardson & Simon Wilkie, 2013. "Faddists, enthusiasts and Canadian divas:a model of the recorded music market," ANU Working Papers in Economics and Econometrics 2013-600, Australian National University, College of Business and Economics, School of Economics.
    2. Nela Filimon & Jordi López-Sintas & Carlos Padrós-Reig, 2011. "A test of Rosen’s and Adler’s theories of superstars," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 35(2), pages 137-161, May.
    3. Martin Richardson & Simon Wilkie, 2015. "Faddists, Enthusiasts and Canadian Divas: Broadcasting Quotas and the Supply Response," Review of International Economics, Wiley Blackwell, vol. 23(2), pages 404-424, May.

    More about this item

    Keywords

    radio; broadcasting; cultural quotas; diversity;

    JEL classification:

    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • L59 - Industrial Organization - - Regulation and Industrial Policy - - - Other

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