Commercial Broadcasting and Local Content: Cultural Quotas, Advertising and Public Stations

Author: Richardson, Martin

Source: The Economic Journal, Volume 116, Number 511, April 2006 , pp. 605-625(21)

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Abstract:

This article considers two radio stations choosing combinations of local and international content to broadcast to consumers with preferences over those combinations. Station revenue derives from sales of advertising time, the demand for which depends negatively on its price and positively on the station's market share and consumers get disutility from advertising. This article derives the laissez-faire solution to this model and considers the consequences of a local content quota, an advertising cap and a non-commercial public station for broadcasting diversity and welfare with and without an externality attached to local content.

Document Type: Research article

DOI: http://dx.doi.org/10.1111/j.1468-0297.2006.01094.x

Affiliations: 1: Australian National University

Publication date: 2006-04-01