EconPapers    
Economics at your fingertips  
 

TV Advertising, Program Quality, and Product-Market Oligopoly

Tore Nilssen () and Lars Sørgard ()

Industrial Organization from University Library of Munich, Germany

Abstract: We present a model of the TV-advertising market that encompasses both the product markets and the market for TV programs. We argue that the TV industry has several idiosyncratic characteristics that need to be modeled, and show that the strategic interaction in this industry differs from other industries in many respects. We find that a move from a TV monopoly to a TV duopoly may reduce both the total number of viewers and the total amount of TV advertising. A softening of price competition in each product market results in more investment in program quality, higher price per advertising slot, and more advertising. A reduction of the number of firms in each product market may have the opposite effect if the price competition in the product market is sufficiently soft initially. Finally, we find that even small asymmetries between product markets can cause large asymmetries with respect to which producers buy advertising on TV.

JEL-codes: L82 L13 M37 (search for similar items in EconPapers)
Pages: 2 pages
Date: 2003-03-27
New Economics Papers: this item is included in nep-com and nep-ind
Note: 2 pages, Adobe.pdf
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/io/papers/0303/0303012.pdf (application/pdf)

Related works:
Working Paper: TV Advertising, Program Quality, and Product-Market Oligopoly (2000) Downloads
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:wpa:wuwpio:0303012

Access Statistics for this paper

More papers in Industrial Organization from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ().

 
Page updated 2020-09-22
Handle: RePEc:wpa:wuwpio:0303012