Why Is Exclusivity in Broadcasting Rights Prevalent and Why Does Simple Regulation Fail?

David Martimort and Jerome Pouyet

No 17446, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Pay-TV firms compete both downstream to attract viewers and upstream to acquire broadcasting rights. Because profits inherited from downstream competition satisfy a convexity property, allocating rights to the dominant firm maximizes the industry profit. Such an exclusive allocation of rights emerges as a robust equilibrium outcome but may fail to be welfare maximizing. We analyze whether a ban on resale and a ban on package bidding may improve welfare. These corrective policies have no impact on the final allocation but lead to profit redistribution along the value chain.

Keywords: Broadcasting rights; Upstream and downstream competition; Exclusivity (search for similar items in EconPapers)
JEL-codes: L13 L42 (search for similar items in EconPapers)
Date: 2022-07
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP17446 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Why Is Exclusivity in Broadcasting Rights Prevalent and Why Does Simple Regulation Fail ? (2024)
Working Paper: Why Is Exclusivity in Broadcasting Rights Prevalent and Why Does Simple Regulation Fail? (2024)
Working Paper: Why Is Exclusivity in Broadcasting Rights Prevalent and Why Does Simple Regulation Fail? (2024)
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:cpr:ceprdp:17446

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP17446

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().