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Under the current market structure in the TV industry advertising prices are typically set by TV channels while viewer prices are set by distributors (e.g., cable operators). The latter implies that the distributors partly internalize the competition between the TV channels, since they take into...
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"Sport on television is big business. Broadcasters across the world regularly agree highly lucrative deals for the … television broadcast rights to cover major sporting events or competitions. At the same time, however, sport is about more than …
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We consider a model of a TV oligopoly where TV channels transmit advertising and viewers dislike such commercials. We show that advertisers make a lower profit the larger the number of TV channels. If TV channels are sufficiently close substitutes, there will be underprovision of advertising...
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