EconPapers    
Economics at your fingertips  
 

Programming and Advertising Competition in the Broadcasting Industry

Jean Gabszewicz (), Didier Laussel () and Nathalie Sonnac

Journal of Economics & Management Strategy, 2004, vol. 13, issue 4, 657-669

Abstract: We analyze competition between two private television channels that derive their profits from advertising receipts. These profits are shown to be proportional to total population advertising attendance. The channels play a sequential game in which they first select their profiles (program mixes) and then their advertising ratios. We show that these ratios play the same role as prices in usual horizontal differentiation models. We prove that whenever ads' interruptions are costly for viewers the program mixes of the channels never converge but that the niche strategies are less effective and that the channel "profiles" are closer as advertising aversion becomes stronger. Copyright Blackwell Publishing 2004.

Date: 2004
References: Add references at CitEc
Citations: View citations in EconPapers (98) Track citations by RSS feed

Downloads: (external link)
http://www.blackwell-synergy.com/servlet/useragent ... &year=2004&part=null link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Programming and advertising competition in the broadcasting industry (2004) Downloads
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:bla:jemstr:v:13:y:2004:i:4:p:657-669

Ordering information: This journal article can be ordered from
http://www.blackwell ... ref=1058-6407&site=1

Access Statistics for this article

More articles in Journal of Economics & Management Strategy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2019-11-16
Handle: RePEc:bla:jemstr:v:13:y:2004:i:4:p:657-669