ERIC Number: ED102938
Record Type: Non-Journal
Publication Date: 1975-Jan
Television Programming, Monopolistic Competition and Welfare. Technical Report No. 159.
Spence, Michael; Owen, Bruce
An economic analysis of television programing was conducted focusing on the public welfare implications of alternative market structures and policies in the broadcasting industry. Welfare was measured by the sum of producer's and consumer's surplus. It was demonstrated that any of the private market systems considered contain biases against certain kinds of programs. Bias was present with pay TV, but it was worse under a competitive, advertiser supported structure. The study results suggested that pay TV on cable, with its elastic supply of channels, offers the opportunity for more programs than can be supported by advertising, and that this has a desirable effect on viewer welfare. (Author/PF)
Publication Type: Reports - Descriptive
Education Level: N/A
Sponsor: National Science Foundation, Washington, DC.
Authoring Institution: Stanford Univ., CA. Inst. for Mathematical Studies in Social Science.