Content and advertising: TV media competition in a mixed-duopoly market

Hui Pan

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    Abstract

    This paper investigates the advertising intensity and channel content in a mixed-duopoly market. We find that there is less content difference in a mixed-duopoly market than in a private-duopoly market. The private channel is worse off when it competes against a state channel since the private channel faces more intense competition in content and viewing price. We also extend our analysis to social welfare investigation and policy implications. We show that the mixed-duopoly market is socially preferred to the private-duopoly market. It is also found that government intervention by using state channel only cannot reach social optimum.
    Original languageEnglish
    Pages (from-to)137-154
    JournalJournal of Economic Asymmetries
    Volume6
    Issue number2
    DOIs
    Publication statusPublished - Sep 2009

    Keywords

    • TV media
    • mixed duopoly
    • two-sided markets
    • competition
    • regulation

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