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Advertising competition in the French free-to-air television broadcasting industry

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Listed:
  • Ivaldi, Marc
  • Zhang, Jiekai

Abstract

This paper studies the advertising competition in the French free TV broadcasting industry, following a decision of the French anti-trust authority on the acquisition of two channels by the most active media group of the sector. After specifying a structural model of oligopoly competition of free TVs, we identify the shape and magnitude of the feedback loop between TV viewers and advertisers using French market data from March 2008 to December 2013. We implement a simple procedure to test the market conduct of TV channels, and identify that the nature of competition is of Cournot type in this industry. Finally, based on a series of competitive analysis, we conclude that the approved acquisition has not significantly affected the industry's competitiveness, and that the implemented behavioral remedies seems to be efficient in protecting the consumer surplus.

Suggested Citation

  • Ivaldi, Marc & Zhang, Jiekai, 2015. "Advertising competition in the French free-to-air television broadcasting industry," TSE Working Papers 15-578, Toulouse School of Economics (TSE), revised Apr 2018.
    • Handle: RePEc:tse:wpaper:29319
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    References listed on IDEAS

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    Cited by:

    1. Anderson, Simon P. & Peitz, Martin, 2015. "Media see-saws : winners and losers on media platforms," Working Papers 15-16, University of Mannheim, Department of Economics.
    2. Jiekai ZHANG, 2016. "The impact of advertising length caps on TV: Evidence from the French broadcast TV industry," Working Papers 16-06, NET Institute.

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    More about this item

    Keywords

    Advertising; competition; media; TV; two-sided market; market conduct; behavioral remedies;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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