Vertical integration and product market competition: Evidence from the Spanish local TV industry

Ricard Gil

No D/893, IESE Research Papers from IESE Business School

Abstract: This paper empirically examines the relation between product market competition and vertical integration in the Spanish local TV industry. For this reason, I use a data set of Spanish local TV stations that provides station level information on vertical integration and product market competition, as well as other station and market characteristics, for the years 1996, 1999 and 2002. During this period, changes in regulation in this industry had a strong impact on the level of market competition faced by local TV stations. I use differences in market structure across markets and years to empirically study the relation between vertical integration and competition. My results show that there exists a negative relation between vertical integration and market competition. I also find that despite the fact that private stations are less likely to integrate content production, they are more likely to do so the higher the number of competing stations in their coverage area. Private stations do so because by increasing the percentage of content produced in-house they differentiate themselves from competition and therefore soften competition and maximize profits.

Keywords: market competition; local TV Industry; product; vertical integration (search for similar items in EconPapers)
Pages: 51 pages
Date: 2011-01-11
New Economics Papers: this item is included in nep-bec, nep-com, nep-cul, nep-ict, nep-ind and nep-reg
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.iese.edu/research/pdfs/DI-0893-E.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebg:iesewp:d-0893

Access Statistics for this paper

More papers in IESE Research Papers from IESE Business School IESE Business School, Av Pearson 21, 08034 Barcelona, SPAIN. Contact information at EDIRC.
Bibliographic data for series maintained by Noelia Romero ().