Optimal Divisionalization of Cable Television Networks

In this article, a condition for the optimal division’s number is presented, for a market with two cable operators who offer a network service. First, a reason is presented to justify a partial covering of the national market from the cable operators. Second, a problem of moral hazard is revealed, which is able to appear through the implementation of franchising schemes with independent divisions.

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Year of publication:	2003-03-30
Authors:	Leitão, João
Institutions:	EconWPA
Subject:	Optimal Divisionalization \| Franchising \| Vertical Integration

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Series:	Industrial Organization.
Type of publication:	Book / Working Paper
Notes:	Type of Document - Tex/WordPerfect/Handwritten; prepared on IBM PC - PC-TEX/UNIX Sparc TeX; to print on HP/PostScript/Franciscan monk; pages: 25 ; figures: included/request from author/draw your own 25 pages
Classification:	L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms ; L20 - Firm Objectives, Organization, and Behavior. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005134552