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The economics of TV tune-in

Linfeng Chen, Qibing Hu and Qiang Lv

Economic Modelling, 2020, vol. 89, issue C, 189-200

Abstract: TV tune-in, namely the preview of forthcoming programs, is an important type of TV advertising. We examine TV tune-in as a continuous variable. First, tune-in can increase profits when TV stations are sufficiently differentiated and the market is partially covered. Second, tune-in crowds out program quality. Third, tune-in lowers advertisement supply. Further, tune-in can increase profits in a partially covered market if firms are sufficiently differentiated. Otherwise, it leads to low profits. We also identify the effects of tune-in on consumer surplus and social welfare and suggest that tune-in should be prohibited whenever it lowers program quality and social welfare.

Keywords: Tune-in; Quality; Commercial advertising (search for similar items in EconPapers)
JEL-codes: D83 L13 M37 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.econmod.2019.10.018

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