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The Telecommunications Act of 1996 and Radio Market Structure

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  • Bruce Drushel

Abstract

The Telecommunications Act of 1996 revised radio station ownership restrictions in a manner that allowed marketplace-driven growth among group owners. This study focuses on changes to the market structure of the top 50 radio markets in the United States between 1992 and 1997. The author found horizontal concentration as measured by the Hirschman-Herfindahl Index to have nearly doubled, and vertical integration also had increased. Whereas radio was once classified as "monopolistic competition," many markets now may meet the definition of oligopoly. Increased concentration does not appear to have led to increased listener choice, but does appear related to higher advertising rates.

Suggested Citation

  • Bruce Drushel, 1998. "The Telecommunications Act of 1996 and Radio Market Structure," Journal of Media Economics, Taylor & Francis Journals, vol. 11(3), pages 3-20.
    • Handle: RePEc:taf:jmedec:v:11:y:1998:i:3:p:3-20
    DOI: 10.1207/s15327736me1103_2
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    Cited by:

    1. Przemysław Jeziorski, 2023. "Empirical Model of Dynamic Merger Enforcement—Choosing Ownership Caps in U.S. Radio," Management Science, INFORMS, vol. 69(8), pages 4457-4480, August.
    2. Przemysław Jeziorski, 2014. "Estimation of cost efficiencies from mergers: application to US radio," RAND Journal of Economics, RAND Corporation, vol. 45(4), pages 816-846, December.

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