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Convergence and the Potential Ban on Interactive Product Placement in Germany

  • Christian Jansen

    (Humboldt-University of Berlin)

This paper addresses the economic impact of German advertising regulations. The digital convergence of media provides a starting point for the analysis. This convergence makes technically feasible “interactive product placement” (IPP), the integration of interactively purchasable products in television programs and movies for the purpose of advertising. Such advertising could conceivably outstrip traditional product placement as a source of revenues for the film industry. Moreover, IPP could provide valuable incentives to create new audiovisual hardware and software. As product placement is generally banned in Germany, we critically review relevant regulations. Additionally, a simple model is developed that allows for a welfare economic approach to the analysis of an IPP ban.

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File URL: http://econwpa.repec.org/eps/le/papers/0302/0302002.pdf
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Paper provided by EconWPA in its series Law and Economics with number 0302002.

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Length: 36 pages
Date of creation: 19 Feb 2003
Date of revision:
Handle: RePEc:wpa:wuwple:0302002
Note: Type of Document - pdf; prepared on PC; pages: 36
Contact details of provider: Web page: http://econwpa.repec.org

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  1. De Vany, A. & Walls, W.D., 1999. ""Uncertainty in the Movies: Does Star Power Reduce the Terror of the Box Office?"," Papers 98-99-10, California Irvine - School of Social Sciences.
  2. Nichols, Len M, 1985. "Advertising and Economic Welfare," American Economic Review, American Economic Association, vol. 75(1), pages 213-18, March.
  3. Benjamin Klein & Kevin M. Murphy & Lynne Schneider, 1981. "Governmental REgualtion of Cigarette Health Information," UCLA Economics Working Papers 200, UCLA Department of Economics.
  4. Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August.
  5. Grossman, Gene M & Shapiro, Carl, 1984. "Informative Advertising with Differentiated Products," Review of Economic Studies, Wiley Blackwell, vol. 51(1), pages 63-81, January.
  6. Stegeman, Mark, 1991. "Advertising in Competitive Markets," American Economic Review, American Economic Association, vol. 81(1), pages 210-23, March.
  7. Simon P. Anderson & Stephen Coate, 2000. "Market Provision of Public Goods: The Case of Broadcasting," NBER Working Papers 7513, National Bureau of Economic Research, Inc.
  8. Paul R. Milgrom & John Roberts, 1984. "Price and Advertising Signals of Product Quality," Cowles Foundation Discussion Papers 709, Cowles Foundation for Research in Economics, Yale University.
  9. Jean Gabszewicz & Didier Laussel & Nathalie Sonnac, 1999. "TV-Broadcasting Competition and Advertising," Working Papers 99-72, Centre de Recherche en Economie et Statistique.
  10. Massimo Motta, 1996. "Advertising bans," Economics Working Papers 205, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 1997.
  11. Wright, Donald J, 1994. "Television Advertising Regulation and Program Quality," The Economic Record, The Economic Society of Australia, vol. 70(211), pages 361-67, December.
  12. Brown, Allan & Cave, Martin, 1992. "The Economics of Television Regulation: A Survey with Application to Australia," The Economic Record, The Economic Society of Australia, vol. 68(203), pages 377-94, December.
  13. Nilssen, T. & Sorgard, L., 2000. "TV Advertising, Programming Investments, and Product-Market Oligopoly," Papers 6/2000, Norwegian School of Economics and Business Administration-.
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