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

Listed author(s):
  • Ivaldi, Marc
  • Zhang, Jiekai

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.

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File URL: http://www.tse-fr.eu/sites/default/files/TSE/documents/doc/wp/2015/wp_tse_578.pdf
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Paper provided by Toulouse School of Economics (TSE) in its series TSE Working Papers with number 15-578.

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Date of creation: May 2015
Handle: RePEc:tse:wpaper:29319
Contact details of provider: Phone: (+33) 5 61 12 86 23
Web page: http://www.tse-fr.eu/

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