TV industry, where TV channels choose advertising prices to maximize own profi…t and typically delegate determination of …

raise revenue. A media firm can either be financed by advertising revenue, by direct payment from the viewers (or the …, the larger is the fraction of their revenue coming from advertising. A media firm's scope for raising revenues from ads …

by advertising as well. The closer substitutes the media firms’ products are, the less they rely on consumer payment and … the more they rely on advertising revenues. If media firms can invest in programming, they invest more the less …

We consider a model where TV channels transmit advertising, and viewers dislike such commercials. We find that the less … differentiated the TV channels’ programs are, the lower is the amount of advertising in equilibrium. Relative to the social optimum …, there is underprovision of advertising if TV channels are sufficiently close substitutes. In such a situation, a merger …

Under the current market structure in the TV industry advertising prices are typically set by TV channels while viewer … the willingness to pay for rival channels. We find that a shift to a market structure where advertising prices as well as …

We consider a model of a TV oligopoly where TV channels transmit advertising and viewers dislike such commercials. We … substitutes, there will be underprovision of advertising relative to social optimum. We also find that the more viewers dislike … ads, the more likely it is that welfare is increasing in the number of advertising financed TV channels. A publicly owned …