Network Competition and the Timing of Commercials

Gil Epstein

Management Science, 1998, vol. 44, issue 3, 370-387

Abstract: In a market with a small number of networks, the timing of the commercial breaks is a very important factor in determining the number of viewers facing a channel. Using a theoretical model and statistical analysis with empirical data from the four networks in the United States, we analyze the equilibrium achieved in this network monopolistic competition. Among other things, it is shown theoretically and empirically that in equilibrium all networks broadcast commercial breaks at the same time. As the ability to coordinate is not always possible, it is shown that, as the program progresses, the level of coordination decreases.

Keywords: Network Promotions; Competition; Timing of Commercials; Competitive Strategies (search for similar items in EconPapers)
Date: 1998
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:44:y:1998:i:3:p:370-387

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