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papers > bourreau03
Marc Bourreau (2003).
Mimicking vs. counter-programming strategies for television programs.
Information Economics and Policy, vol.15, no.1, pp.35--54.
http://dx.doi.org/10.1016/S0167-6245(02)00071-9
Abstract
In this paper, I analyze the trade-off between mimicking and counter-programming strategies in the pay- and the advertiser-supported television industries. Two channels compete with respect to both program profile and program quality. I show that profile differentiation is higher under pay-support than under advertiser-support, as a consequence of the inability of channels to compete in price under advertiser-support. I also show that program quality is higher under advertiser-support than under pay-support if advertising revenues are sufficiently high. Finally, I compare the market provision to the socially optimum provision of programs.
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