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Are commercial ceilings appropriate for the regulation of commercial overload on free-to-air TV channels?

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  • Rothbauer, Julia
  • Sieg, Gernot

Abstract

Commercial ceilings not only restrict broadcasters in their decisions about commercial broadcasting time, but also affect their differentiation of program content. This study examines the welfare effects of commercial ceilings in a two-sided free-to-air TV market, taking into account welfare with respect to content differentiation. We identify a second-best commercial ceiling that maximizes welfare in the absence of enforceable program content regulation and identify the situations in which laissez faire is optimal. The deregulation of commercial broadcasting can improve welfare, even if the laissez-faire level of commercial broadcasting time is excessive.

Suggested Citation

  • Rothbauer, Julia & Sieg, Gernot, 2014. "Are commercial ceilings appropriate for the regulation of commercial overload on free-to-air TV channels?," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100373, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc14:100373
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    Cited by:

    1. Torben Stühmeier, 2019. "Media market concentration and pluralism," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(2), pages 247-259, April.
    2. Changying Li & Youping Li & Jianhu Zhang, 2023. "On the regulation of public broadcasting," Journal of Economics, Springer, vol. 138(2), pages 129-146, March.

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    More about this item

    JEL classification:

    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • M38 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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