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Television Advertising Regulation And Programme Quality

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  • Wright, Donald J.

Abstract

In many countries, including Australia and the United Kingdom, there are regulations that limit the amount of advertising content per hour of television broadcasts. This paper examines the effect this regulation has on programme quality and viewer welfare. It is shown that regulation reduces programme quality and that its effect on viewer welfare is ambiguous. In some circumstances, fostering competition can both reduce the number of advertisements per unit of time and increase programme quality. This unambiguously increases viewer welfare. Therefore, depending on the parameters of the model, fostering competition may be preferable to regulating the amount of advertisements per unit of time.

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  • Wright, Donald J., 1992. "Television Advertising Regulation And Programme Quality," Working Papers 178, University of Sydney, School of Economics.
    • Handle: RePEc:syd:wpaper:2123/7536
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    Cited by:

    1. Anderson, Simon P. & Gabszewicz, Jean J., 2006. "The Media and Advertising: A Tale of Two-Sided Markets," Handbook of the Economics of Art and Culture, in: V.A. Ginsburgh & D. Throsby (ed.), Handbook of the Economics of Art and Culture, edition 1, volume 1, chapter 18, pages 567-614, Elsevier.
    2. Simon P. Anderson & Stephen Coate, 2005. "Market Provision of Broadcasting: A Welfare Analysis," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(4), pages 947-972.
    3. Henriques, David, 2020. "Effects of TV airtime regulation on advertising quality and welfare," LSE Research Online Documents on Economics 106963, London School of Economics and Political Science, LSE Library.
    4. Christian Jansen, 2003. "Convergence and the Potential Ban on Interactive Product Placement in Germany," Law and Economics 0302002, University Library of Munich, Germany.
    5. Lapo Filistrucchi & Andrea Mangani & Luigi Luini, 2012. "Banning Ads from Prime-Time State TV: Lessons from France," Working Papers 12-23, NET Institute.
    6. Henriques, David, 2021. "Effects of TV airtime regulation on advertising quality and welfare," Information Economics and Policy, Elsevier, vol. 55(C).
    7. Greiner, Tanja & Sahm, Marco, 2018. "How effective are advertising bans? On the demand for quality in two-sided media markets," Information Economics and Policy, Elsevier, vol. 43(C), pages 48-60.

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