The Telecommunications Act of 1996 and Radio Market Structure

Bruce Drushel

Journal of Media Economics, 1998, vol. 11, issue 3, 3-20

Abstract: The Telecommunications Act of 1996 revised radio station ownership restrictions in a manner that allowed marketplace-driven growth among group owners. This study focuses on changes to the market structure of the top 50 radio markets in the United States between 1992 and 1997. The author found horizontal concentration as measured by the Hirschman-Herfindahl Index to have nearly doubled, and vertical integration also had increased. Whereas radio was once classified as "monopolistic competition," many markets now may meet the definition of oligopoly. Increased concentration does not appear to have led to increased listener choice, but does appear related to higher advertising rates.

Date: 1998
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DOI: 10.1207/s15327736me1103_2

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