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Bidding for Commercial Broadcasting: An Analysis of UK Experience

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  • Dnes, Antony W

Abstract

A model of advertiser-financed.television is applied to the 1991 auction of broadcasting licences in the United Kingdom. The 1991 procedure is shown as maintaining monopolistic behavior. A development of H. Demsetz's franchising proposal of natural monopoly is shown as allocatively superior. In the increasing-cost case, an advertising levy is essential to guard against possible welfare loss and a subsidy may also be useful. Copyright 1993 by Scottish Economic Society.

Suggested Citation

  • Dnes, Antony W, 1993. "Bidding for Commercial Broadcasting: An Analysis of UK Experience," Scottish Journal of Political Economy, Scottish Economic Society, vol. 40(1), pages 104-115, February.
    • Handle: RePEc:bla:scotjp:v:40:y:1993:i:1:p:104-15
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    Cited by:

    1. Else, Peter, 1996. "Subsidy requirements in a restructured rail network : With particular reference to British Rail," Transport Policy, Elsevier, vol. 3(1-2), pages 13-15.

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