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Title:Regulating advertising in the presence of public service broadcasting PDF Logo
Authors:Stühmeier, Torben
Wenzel, Tobias
Issue Date:2012
Series/Report no.:DICE discussion paper 41
Abstract:Television advertising levels in Europe are regulated according to the Audiovisual Service Media Directive where member states of the European Union usually impose stricter regulation on their Public Service Broadcasting (PSB) channels. The present model evaluates the effects of symmetric and asymmetric regulation of ad levels on competition for viewers and advertisers in a duopoly framework where a public and a private broadcaster compete. If both broadcasters face the same advertising cap, regulation can be profit-increasing for both channels. If the public broadcaster is more strictly regulated, this may benefit the commercial rival if higher revenues in the advertising market outweigh the loss in viewership.
Subjects:media markets
two-sided markets
JEL:L82
L13
D43
ISBN:978-3-86304-040-6
Document Type:Working Paper
Appears in Collections:DICE Discussion Paper, Düsseldorf Institute for Competition Economics (DICE)

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