As Seen on TV: Price Discrimination and Competition in Television Advertising
Ricard Gil (),
Daniel Riera-Crichton () and
Christian Ruzzier ()
MPRA Paper from University Library of Munich, Germany
In this paper we examine the empirical relationship between price discrimination and competition in television advertising. While most empirical papers on the topic document a positive relationship, we find that price discrimination is negatively related to competition (as measured by the number of competing firms), a result that is consistent with conventional wisdom. Our results also show that only incumbent stations (unlike entrants) respond by engaging less in price discrimination when faced with a more competitive environment. Our evidence suggests that incumbents may use price discrimination as a strategic tool to accommodate entry - a strategy that has received scant attention in the existing entry literature.
Keywords: competition; price discrimination; Spanish television (search for similar items in EconPapers)
JEL-codes: D22 D43 L11 L82 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-com, nep-cul and nep-mkt
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:75993
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