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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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    3. Martin Richardson & Simon Wilkie, 2017. "Faddists, Enthusiasts and Canadian Divas: Broadcasting Quotas and the Supply Response," World Scientific Book Chapters, in: Dimensions of Trade Policy, chapter 4, pages 73-104, World Scientific Publishing Co. Pte. Ltd..

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    More about this item

    Keywords

    radio; broadcasting; cultural quotas; diversity;
    All these keywords.

    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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