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Television Advertising Regulation And Programme Quality

  • Wright, Donald J.

In many countries, including Australia and the United Kingdom, there are regulations that limit the amount of advertising content per hour of television broadcasts. This paper examines the effect this regulation has on programme quality and viewer welfare. It is shown that regulation reduces programme quality and that its effect on viewer welfare is ambiguous. In some circumstances, fostering competition can both reduce the number of advertisements per unit of time and increase programme quality. This unambiguously increases viewer welfare. Therefore, depending on the parameters of the model, fostering competition may be preferable to regulating the amount of advertisements per unit of time.

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File URL: http://hdl.handle.net/2123/7536
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Paper provided by University of Sydney, School of Economics in its series Working Papers with number 178.

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Date of creation: Aug 1992
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Handle: RePEc:syd:wpaper:2123/7536
Contact details of provider: Postal: Sydney, NSW 2006
Phone: 61 +2 9351 5055
Fax: 61 +2 9351 4341
Web page: http://sydney.edu.au/arts/economics
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