The role of program quality and publicly-owned platforms in the free to air broadcasting industry

  1. González-Maestre, Miguel
  2. Martínez Sánchez, Francisco
Revista:
Working papers = Documentos de trabajo: Serie AD

Año de publicación: 2010

Número: 19

Tipo: Documento de Trabajo

Resumen

We consider the role of a publicly-owned platform and program quality in the free to air broadcasting industry. We compare the equilibrium levels of advertising under private and mixed duopoly competition, and show that the connection between program quality and advertising incentives are drastically different between both scenarios. We also consider the welfare implications of our analysis and obtain policy implications regarding the optimal government?s intervention in the broadcasting industry.