Welfare Effects of Public Service Broadcasting in a Free-to-Air TV Market
A welfare-maximizing Public Service Broadcaster (PSB) broadcasts both information-type and show-type content if (i) the information consumption of TV viewers generates external benefits for society by improving the ability of voters to control politicians and (ii) the marginal external benefits of information consumption diminish as the information possessed by voters increases. We analyze a two-sided free-to-air TV market with two differentiated private channels and a commercial-free PSB. Welfare depends on the efficiency of the PSB, the external benefits of voter information, and lost rents from the advertising market. Welfare can be higher without a PSB.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.socialpolitik.org/|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hans Jarle Kind & Tore Nilssen & Lars Sørgard, 2007.
"Competition for Viewers and Advertisers in a TV Oligopoly,"
Journal of Media Economics,
Taylor & Francis Journals, vol. 20(3), pages 211-233.
- Hans Jarle Kind & Tore Nilssen & Lars Sørgard, 2006. "Competition for Viewers and Advertisers in a TV Oligopoly," CESifo Working Paper Series 1862, CESifo Group Munich.
- Christine Benesch, 2010. "Governance of Public Broadcasters and Television Consumption," CREMA Working Paper Series 2010-18, Center for Research in Economics, Management and the Arts (CREMA).
- Mark Armstrong & Helen Weeds, 2005. "Public Service Broadcasting in the Digital World," Industrial Organization 0507010, EconWPA.
- GABSZEWICZ, Jean J. & LAUSSEL, Didier & SONNAC, Nathalie, .
"Programming and advertising competition in the broadcasting industry,"
CORE Discussion Papers RP
1873, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Jean J. Gabszewicz & Didier Laussel & Nathalie Sonnac, 2004. "Programming and Advertising Competition in the Broadcasting Industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(4), pages 657-669, December.
- Julia Rothbauer & Gernot Sieg, 2013.
"Public Service Broadcasting of Sport, Shows, and News to Mitigate Rational Ignorance,"
Journal of Media Economics,
Taylor & Francis Journals, vol. 26(1), pages 21-40, March.
- Rothbauer, Julia & Sieg, Gernot, 2010. "Public service broadcasting of sport, shows, and news as economic solution to the voter's paradox of rational ignorance," MPRA Paper 27190, University Library of Munich, Germany.
- Rothbauer, Julia & Sieg, Gernot, 2010. "Public service broadcasting of sport, shows, and news as economic solution to the voter's paradox of rational ignorance," Economics Department Working Paper Series 9, Technische Universität Braunschweig, Economics Department.
- Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135.
- Andrea Prat & David Strömberg, 2006.
"Commercial Television and Voter Information,"
784828000000000363, UCLA Department of Economics.
- Prat, Andrea & Strömberg, David, 2011. "The Political Economy of Mass Media," CEPR Discussion Papers 8246, C.E.P.R. Discussion Papers.
- Stühmeier, Torben & Wenzel, Tobias, 2012.
"Regulating advertising in the presence of public service broadcasting,"
DICE Discussion Papers
41, Düsseldorf Institute for Competition Economics (DICE), University of Düsseldorf.
- Stühmeier Torben & Wenzel Tobias, 2012. "Regulating Advertising in the Presence of Public Service Broadcasting," Review of Network Economics, De Gruyter, vol. 11(2), pages 1-23, June.
- Simon P. Anderson & Stephen Coate, 2003.
"Market Provision of Broadcasting: A Welfare Analysis,"
Virginia Economics Online Papers
358, University of Virginia, Department of Economics.
- Simon P. Anderson & Stephen Coate, 2005. "Market Provision of Broadcasting: A Welfare Analysis," Review of Economic Studies, Oxford University Press, vol. 72(4), pages 947-972.
- Mark Armstrong, 2005. "Public service broadcasting," Fiscal Studies, Institute for Fiscal Studies, vol. 26(3), pages 281-299, September.
- Jürgen Hagen, 2006. "Introduction," International Tax and Public Finance, Springer, vol. 13(4), pages 301-302, August.
- Peitz, Martin & Valletti, Tommaso M., 2008.
"Content and advertising in the media: Pay-tv versus free-to-air,"
International Journal of Industrial Organization,
Elsevier, vol. 26(4), pages 949-965, July.
- Peitz, Martin & Valletti, Tommaso, 2004. "Content and Advertising in the Media: Pay-TV versus Free-To-Air," CEPR Discussion Papers 4771, C.E.P.R. Discussion Papers.
- Gene M. Grossman & Carl Shapiro, 1984. "Informative Advertising with Differentiated Products," Review of Economic Studies, Oxford University Press, vol. 51(1), pages 63-81.
- Shaun P. Hargreaves Heap, 2005. "Television in a digital age: what role for public service broadcasting?," Economic Policy, CEPR;CES;MSH, vol. 20(41), pages 112-157, 01.
- Choi, Jay Pil, 2006. "Broadcast competition and advertising with free entry: Subscription vs. free-to-air," Information Economics and Policy, Elsevier, vol. 18(2), pages 181-196, June.
- Sara Connolly & Shaun P. Hargreaves Heap, 2007. "Cross Country Differences in Trust in Television and the Governance of Public Broadcasters," Kyklos, Wiley Blackwell, vol. 60(1), pages 3-14, 02.
When requesting a correction, please mention this item's handle: RePEc:zbw:vfsc13:79800. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.