Kerkhof, Anna and Muenster, Johannes (2015). Quantity restrictions on advertising, commercial media bias, and welfare. J. Public Econ., 131. S. 124 - 142. LAUSANNE: ELSEVIER SCIENCE SA. ISSN 0047-2727
Full text not available from this repository.Abstract
We study the welfare effect of a quantity restriction on advertising in free-to-air television (and other advertising financed media) in the presence of commercial media bias. Broadcasters face a trade-off between increasing the number of viewers by sending content that is highly valued by viewers, and increasing the price of advertising by choosing advertiser friendly content. A cap on advertising drives the per-viewer price of ads up; thus, content improves for viewers. Therefore, the cap can be welfare enhancing, even when viewers are not ad averse. Competition among broadcasters makes it more likely that a cap on advertising improves welfare. Thus, there is a complementarity between regulation and competition on this market. We also show that a tax on advertising revenues has quite different effects than a cap on advertising quantity. (C) 2015 The Authors. Published by Elsevier B.V.
Item Type: | Journal Article | ||||||||||||
Creators: |
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URN: | urn:nbn:de:hbz:38-388047 | ||||||||||||
DOI: | 10.1016/j.jpubeco.2015.09.004 | ||||||||||||
Journal or Publication Title: | J. Public Econ. | ||||||||||||
Volume: | 131 | ||||||||||||
Page Range: | S. 124 - 142 | ||||||||||||
Date: | 2015 | ||||||||||||
Publisher: | ELSEVIER SCIENCE SA | ||||||||||||
Place of Publication: | LAUSANNE | ||||||||||||
ISSN: | 0047-2727 | ||||||||||||
Language: | English | ||||||||||||
Faculty: | Unspecified | ||||||||||||
Divisions: | Unspecified | ||||||||||||
Subjects: | no entry | ||||||||||||
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URI: | http://kups.ub.uni-koeln.de/id/eprint/38804 |
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