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Market Structure, Program Diversity, And Radio Audience Size

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  • ROBERT P. ROGERS
  • JOHN R. WOODBURY

Abstract

This paper examines the relationships among radio station listenership, the number of program formats, and the number of stations. These relationships are statistically significant and consistent with theory, but the interrelationships are numerically small. The results imply that proposals by the federal Communications Commission and Congress to relax ownership restrictions must induce substantial changes in station numbers in order to noticeably increase programming diversity. Merely modest changes in these numbers will have only small diversity effects. The paper's results also imply that merely mandating the number of formats in a market may not be in the interests of listeners.

Suggested Citation

  • Robert P. Rogers & John R. Woodbury, 1996. "Market Structure, Program Diversity, And Radio Audience Size," Contemporary Economic Policy, Western Economic Association International, vol. 14(1), pages 81-91, January.
    • Handle: RePEc:bla:coecpo:v:14:y:1996:i:1:p:81-91
    DOI: 10.1111/j.1465-7287.1996.tb00605.x
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    References listed on IDEAS

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    1. Michael Spence, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 43(2), pages 217-235.
    2. Michael Spence & Bruce Owen, 1977. "Television Programming, Monopolistic Competition, and Welfare," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 91(1), pages 103-126.
    3. Peter O. Steiner, 1952. "Program Patterns and Preferences, and the Workability of Competition in Radio Broadcasting," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 66(2), pages 194-223.
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    Cited by:

    1. Martin Richardson & Simon Wilkie, 2013. "Faddists, enthusiasts and Canadian divas:a model of the recorded music market," ANU Working Papers in Economics and Econometrics 2013-600, Australian National University, College of Business and Economics, School of Economics.
    2. Steven Berry & Alon Eizenberg & Joel Waldfogel, 2016. "Optimal product variety in radio markets," RAND Journal of Economics, RAND Corporation, vol. 47(3), pages 463-497, August.
    3. Andrew Sweeting, 2010. "The effects of mergers on product positioning: evidence from the music radio industry," RAND Journal of Economics, RAND Corporation, vol. 41(2), pages 372-397, June.
    4. Dennis Halcoussis & Anton Lowenberg, 2003. "The quantity and quality of radio broadcasting: are small markets underprovided?," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 10(3), pages 347-357.
    5. Martin Richardson, 2004. "Cultural quotas in broadcasting I: a model," ANU Working Papers in Economics and Econometrics 2004-442, Australian National University, College of Business and Economics, School of Economics.
    6. Richard Wurff, 2005. "Competition, Concentration and Diversity in European Television Markets," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 29(4), pages 249-275, November.
    7. Martin Richardson & Simon Wilkie, 2017. "Faddists, Enthusiasts and Canadian Divas: Broadcasting Quotas and the Supply Response," World Scientific Book Chapters, in: Dimensions of Trade Policy, chapter 4, pages 73-104, World Scientific Publishing Co. Pte. Ltd..
    8. Anderson, Simon & Waldfogel, Joel, 2015. "Preference Externalities in Media Markets," CEPR Discussion Papers 10835, C.E.P.R. Discussion Papers.
    9. Czygan, Marco, 1999. "Wohin kann Wettbewerb im Hörfunk führen? Industrieökonomische Analyse des Hörfunksystems der USA und Vergleich mit Deutschenland," Ilmenau Economics Discussion Papers 18, Ilmenau University of Technology, Institute of Economics.
    10. R. Hiller, 2014. "Exclusive Dealing and Its Effects: The Impact of Large Music Festivals on Local Music Venues," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 45(2), pages 153-175, September.
    11. C. Bush & Paul Zimmerman, 2010. "Media Mergers with Preference Externalities and Their Implications for Content Diversity, Consumer Welfare, and Policy," Journal of Industry, Competition and Trade, Springer, vol. 10(2), pages 105-133, June.
    12. Lisa George & Joel Waldfogel, 2000. "Who Benefits Whom in Daily Newspaper Markets?," NBER Working Papers 7944, National Bureau of Economic Research, Inc.

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