Advertising competition in the French free-to-air television broadcasting industry

Ivaldi, Marc and Zhang, Jiekai (2015) Advertising competition in the French free-to-air television broadcasting industry. TSE Working Paper, n. 15-578, Toulouse

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Official URL: http://tse-fr.eu/pub/29319

Abstract

This paper studies the advertising competition in the French free TV broadcasting industry, following a decision of the French anti-trust authority on the acquisition of two channels by the most active media group of the sector. After specifying a structural model of oligopoly competition of free TVs, we identify the shape and magnitude of the feedback loop between TV viewers and advertisers using French market data from March 2008 to December 2013. We implement a simple procedure to test the market conduct of TV channels, and identify that the nature of competition is of Cournot type in this industry. Finally, based on a series of competitive analysis, we conclude that the approved acquisition has not significantly affected the industry's competitiveness, and that the implemented behavioral remedies seems to be efficient in protecting the consumer surplus.

Item Type: Monograph (Working Paper)
Language: English
Date: May 2015
Place of Publication: Toulouse
Uncontrolled Keywords: Advertising, competition, media, TV, two-sided market, market conduct, behavioral remedies
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 21 Sep 2015 13:08
Last Modified: 20 Nov 2018 11:28
OAI ID: oai:tse-fr.eu:29319
URI: http://publications.ut-capitole.fr/id/eprint/16912

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