Does regulation drive market competition? Evidence from the Spanish local TV industry

Ricard Gil

No D/895, IESE Research Papers from IESE Business School

Abstract: This paper empirically examines whether regulation decreases market competition. For this purpose, I use data from Spanish local TV stations for 1996, 1999 and 2002. During this period of time, this industry transitioned from a state of alegality (no regulation in place whatsoever), to being highly regulated and finally to being liberalized. I estimate station population entry thresholds by number of entrants across years to proxy by the nature of competition by determining the necessary market size to sustain an extra station. I find that stations soften competition the most under no regulation and they seem to compete the hardest when highly regulated. I explain in the paper that, even though this is at odds with previous literature, this result is explained by the industry institutions, its low profitability and the nature of the first regulation and its consequent liberalization.

Keywords: regulation; market; competition; TV industry; liberalization (search for similar items in EconPapers)
Pages: 35 pages
Date: 2011-01-15
New Economics Papers: this item is included in nep-com, nep-hme, nep-ind and nep-reg
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.iese.edu/research/pdfs/DI-0895-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-0895

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 ().