Public and Private Activity in Commercial TV Broadcasting


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Public and Private Activity in Commercial TV Broadcasting

Show simple item record Hansen, Bodil O. en_US Keiding, Hans en_US 2009-02-04T10:27:35Z 2009-02-04T10:27:35Z 2006-09-04T00:00:00Z en_US
dc.description.abstract We consider a model of commercial television market, where private broadcasters coexist with a public television broadcaster. Assuming that the public TV station follows a policy of Ramsey pricing whereas the private stations are profit maximizers, we consider the equilibria in this market and compare with a situation where the public station is privatized and acts as another private TV broadcaster. A closer scrutiny of the market for commercial television leads to a distinction between target rating points, which are the prime unit of account in TV advertising, and net coverage, which is the final goal of advertisers. Working with net coverage as the fundamental concept, we exploit the models of competition between public and private price and quantity in order to show that privatization of the public TV station entails a welfare loss and results in TV advertising becoming more expensive. Keywords: TV broadcasting, imperfect competition, Ramsey pricing, welfare comparison. JEL classification: L11, L82, L33 en_US
dc.format.extent 23 s. en_US
dc.language eng en_US
dc.relation.ispartofseries Working paper;2006-002 en_US
dc.subject.other tv broadcasting en_US
dc.subject.other imperfect competition en_US
dc.subject.other ramsey pricing en_US
dc.subject.other welfare comparison en_US
dc.title Public and Private Activity in Commercial TV Broadcasting en_US
dc.type wp en_US
dc.accessionstatus modt06sep04 mielmo en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Økonomisk Institut en_US
dc.contributor.departmentshort ECON en_US
dc.contributor.departmentuk Department of Economics en_US
dc.contributor.departmentukshort ECON en_US
dc.idnumber x656517661 en_US København en_US
dc.publisher.year 2006 en_US

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